UPDATE: eBay (EBAY) Tops Q1 EPS by 2c, Offers Q2 & FY Guidance
eBay (NASDAQ: EBAY) reported Q1 EPS of $0.47, $0.02 better than the analyst estimate of $0.45. Revenue for the quarter came in at $2.14 billion versus the consensus estimate of $2.08 billion.
- Operating margin — GAAP operating margin increased to 28.7% for the first quarter of 2016, compared to 25.7% for the same period last year. Non-GAAP operating margin decreased to 33.4% in the first quarter, compared to 35.6% for the same period last year.
- Taxes — The GAAP effective tax rate for continuing operations for the first quarter of 2016 was 18.4%, compared to 16.7% for the first quarter of 2015. The non-GAAP effective tax rate for continuing operations for the first quarter of 2016 was 20.4%, compared to 20.2% for the first quarter of 2015.
- Cash flow — The company generated $641 million of operating cash flow from continuing operations and $483 million of free cash flow from continuing operations during the first quarter of 2016.
- Stock repurchase program — The company repurchased approximately $1.0 billion of its common stock, or 42.3 million shares, in the first quarter of 2016. The company's total repurchase authorization remaining as of March 31, 2016 was $0.8 billion.
- Cash and cash equivalents and non-equity investments — The company's cash and cash equivalents and non-equity investments portfolio totaled $10.3 billion as of March 31, 2016.
GUIDANCE:
- Second quarter 2016 — The company expects net revenue between $2.14 billion and $2.19 billion, representing FX-Neutral growth of 4% - 6%, with non-GAAP earnings per diluted share from continuing operations in the range of $0.40 - $0.42 and GAAP earnings per diluted share from continuing operations in the range of $0.32 - $0.34.
- Full year 2016 — The company expects net revenue between $8.6 billion and $8.8 billion, representing FX-Neutral growth of 3% - 5%.
(Street sees Q2 EPS of $0.44 on revenue of $2.14 billion and FY revenue of $8.73 billion)
For earnings history and earnings-related data on eBay (EBAY) click here.