eBay (EBAY) Tops Q2 EPS by 1c; Boosts Outlook, $2.5B Added to Buyback

eBay (NASDAQ: EBAY) reported Q2 EPS of $0.43, $0.01 better than the analyst estimate of $0.42. Revenue for the quarter rose 7% on an FX-Neutral basis and 6% on an as-reported basis to $2.23 billion versus the consensus estimate of $2.17 billion.

GMV for the quarter was 20.9 billion, increasing 6% on a foreign exchange (FX) neutral basis and 4% on an as-reported basis. During the quarter, the company generated $764 million of operating cash flow and $617 million of free cash flow from continuing operations while also repurchasing $500 million of its common stock.

“Q2 was another good quarter where we delivered strong results and had acceleration in growth,” said Devin Wenig, President and CEO of eBay Inc. “We are now one year into executing our strategy to provide the best choice, the most relevance and the most powerful selling platform, and there are signs of momentum in our business. We continue to invest in our platforms to ensure eBay is a global commerce leader for years to come.”

GUIDANCE:

eBay sees Q3 2016 EPS of $0.42-$0.44, versus the consensus of $0.44. The company expects Q3 net revenue between $2.16 billion and $2.19 billion, representing FX-Neutral growth of 6% - 7%, versus the consensus of $2.14 billion.

eBay sees FY2016 EPS of $1.85-$1.90, versus the consensus of $1.86. The company expects net revenue between $8.85 billion and $8.95 billion, representing FX-Neutral growth of 5% - 6%, versus the consensus of $8.82 billion.

In July 2016, eBay's board of directors authorized an additional $2.5 billion stock repurchase program, with no expiration from the date of authorization

Baird analyst, Colin Sebastian, said "importantly, the company indicated early "green shoots" from platform initiatives in mobile, C2C, and SEO, potentially driven by structured data initiatives."

For earnings history and earnings-related data on eBay (EBAY) click here.

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