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EBAY Gears Up to Report Q2 Earnings: What's in the Offing?

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eBay (EBAY - Free Report) is scheduled to report second-quarter 2024 results on Jul 31.

For the second quarter of 2024, EBAY expects revenues in the range of $2.49-$2.54 billion. On an FX-neutral basis, the year-over-year change in revenues is anticipated to be (1)%-1%. On a spot rate basis, the same is expected to be (2)%-0%.

The Zacks Consensus Estimate for revenues is pegged at $2.53 billion, implying a decline of 0.5% from the year-ago reported figure.

The company anticipates non-GAAP earnings per share between $1.10 and $1.15, indicating year-over-year growth of 6-11%.

The consensus mark for earnings is pegged at $1.13 per share, indicating a rise of 9.7% from the year-ago quarter’s reported figure.

Let’s see how things have shaped up for the upcoming announcement.

eBay Inc. Price and EPS Surprise

eBay Inc. Price and EPS Surprise

eBay Inc. price-eps-surprise | eBay Inc. Quote

Key Factors to Note

EBAY’s growing focus to expand its Motors Parts & Accessories offerings is likely to have contributed well to its top-line growth in the second quarter of 2024.

Continued momentum in its advertising business, owing to strength in its cost-per-click unit and increased demand for its first-party advertising products, is expected to have been a major growth driver of the company during the quarter under review.

Increasing focus to enhance its collectibles offering on the back of expanding partnerships and newly-launched features like my collections, price guides, revamped condition standards, live commerce, vault storage and new shipping methods to reduce costs, is likely to have been a tailwind. 

The company’s expanding generative AI-backed offerings like Explore, an AI-powered shopping feed, and Shop the Look feature, which leverages generative AI to create shoppable content and fashion recommendations, are expected to have positively impacted its top line during the to-be-reported quarter.

EBAY’s growing initiatives in the United Kingdom, such as introducing curated item specifics, photo guidance, intelligent pricing suggestions and condensed shipping options, are expected to have been a positive.

However, softness in consumer discretionary product spending is expected to have negatively impacted international revenues in the to-be-reported quarter.

The Zacks Consensus Estimate for International revenues stands at $1.23 billion, indicating a decline of 3.3% from the year-ago reported figure.

Sluggishness in eBay’s Marketplace platform and weakening momentum among active buyers are likely to have hurt its gross merchandise volume (GMV) in the quarter under review.

The consensus estimate for GMV is pegged at $18.1 billion, indicating a fall of 0.8% from the prior-year quarter’s reported figure.

Macroeconomic uncertainties and intensifying competition are likely to have been headwinds for the company.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s exactly the case here.

EBAY has an Earnings ESP of +3.34% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are some other companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Aspen Aerogels (ASPN - Free Report) has an Earnings ESP of +23.53% and sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.

Aspen Aerogels is set to report its second-quarter 2024 results on Aug 7. The Zacks Consensus Estimate for ASPN’s earnings is pegged at 5 cents per share, indicating a significant jump from the prior-year quarter’s loss of 22 cents per share.

Apple (AAPL - Free Report) has an Earnings ESP of +3.23% and a Zacks Rank #2 at present.

Apple is scheduled to release third-quarter fiscal 2024 results on Aug 1. The Zacks Consensus Estimate for AAPL’s earnings is pegged at $1.33 per share, suggesting a jump of 5.6% from the prior-year quarter.

GoDaddy (GDDY - Free Report) has an Earnings ESP of +13.08% and a Zacks Rank #3 at present.

GoDaddy is set to report second-quarter 2024 results on Aug 1. The Zacks Consensus Estimate for GDDY’s earnings is pegged at $1.07 per share, indicating growth of 69.8% from the year-ago quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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