Nomura Securities In Depth Quarterly Review on eBay (EBAY); Revising Estimates - eBay Didn't, But We Are
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Price: $103.14 -1.38%
Rating Summary:
23 Buy, 28 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
23 Buy, 28 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on eBay (NASDAQ: EBAY) price target of $43.50 (from $42.00).
Analyst, Brian Nowak, said, "Headline adjusted EPS of $0.56 was a penny below us and a penny ahead of the Street, but the focus was more on the stronger fundamental results and trends in the Marketplaces and PayPal. Marketplaces results were better than expected, with 14% N. American core GMV growth (better than our 9% and the Street’s 11% estimate). The 28% two-year stacked growth rate in 2Q:12 was the highest in the past three years, and eBay also said it is now gaining incremental wallet share from existing and new customers. PayPal revenue was in line with our estimates, but margins continued to surprise to the upside, as the 40.5% incremental margin in 2Q 12 was the highest since 2010. Despite the strong 1H 12, eBay did not revise its 2012 guidance (EPS from $2.30-$2.35). We continue to see upside potential to these numbers and after adjusting our Marketplaces and PayPal forecast are raising our full-year 2012 EPS estimate from $2.42 to $2.46 and our 2013 estimate from $2.91 to $2.96."
For an analyst ratings summary and ratings history on eBay click here. For more ratings news on eBay click here.
Shares of eBay closed at $40.46 yesterday.
Analyst, Brian Nowak, said, "Headline adjusted EPS of $0.56 was a penny below us and a penny ahead of the Street, but the focus was more on the stronger fundamental results and trends in the Marketplaces and PayPal. Marketplaces results were better than expected, with 14% N. American core GMV growth (better than our 9% and the Street’s 11% estimate). The 28% two-year stacked growth rate in 2Q:12 was the highest in the past three years, and eBay also said it is now gaining incremental wallet share from existing and new customers. PayPal revenue was in line with our estimates, but margins continued to surprise to the upside, as the 40.5% incremental margin in 2Q 12 was the highest since 2010. Despite the strong 1H 12, eBay did not revise its 2012 guidance (EPS from $2.30-$2.35). We continue to see upside potential to these numbers and after adjusting our Marketplaces and PayPal forecast are raising our full-year 2012 EPS estimate from $2.42 to $2.46 and our 2013 estimate from $2.91 to $2.96."
For an analyst ratings summary and ratings history on eBay click here. For more ratings news on eBay click here.
Shares of eBay closed at $40.46 yesterday.
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