eBay, Inc. (EBAY) Tops Q2 EPS by 1c, Guides Q3 Below Expectations
(Updated - July 16, 2014 4:19 PM EDT)
eBay, Inc. (Nasdaq: EBAY) reported Q2 EPS of $0.69, $0.01 better than the analyst estimate of $0.68. Revenue for the quarter came in at $4.4 billion versus the consensus estimate of $4.38 billion.
PayPal net total payment volume (TPV) grew 29% with Merchant Services volume up 35% and on-eBay volume up 13%. Revenue grew to $1.9 billion. PayPal gained 4.0 million new active registered accounts to end the quarter at 152 million, up 15%. Global on-eBay penetration increased to 79.8%. PayPal signed a deal with GE to extend its relationship offering a dual branded retail credit card and committed to purchase the loan portfolio in 2016 for an estimated $1 billion, based on the size of the portfolio at that time. This provides PayPal with flexibility to expand its credit offerings to consumers and merchants while improving its ability to manage transaction expense and reinvest back into the business to accelerate payment volume growth.
eBay Marketplaces gross merchandise volume (GMV) grew 12%, with the U.S. up 10% and International up 14%. Revenue grew to $2.2 billion. Marketplaces gained 3.8 million new buyers to end the quarter with 149 million active buyers, up 14%. Top rated sellers in the company's three largest markets grew their same-store sales 14% and offered free shipping on 56.4% of transactions across those markets. The selection of items available on Marketplaces grew to over 700 million listings, including both platform and non-platform offerings, reflecting the success of improved selling initiatives, particularly on mobile.
Business Outlook
Third quarter 2014 — The company expects net revenues in the range of $4,300 - $4,400 million with GAAP earnings per diluted share in the range of $0.51 - $0.53 and non-GAAP earnings per diluted share in the range of $0.65 - $0.67.
*** The Street sees Q3 EPS of $0.70 on revenue of $4.42 billion.
Full year 2014 — The company expects net revenues in the range of $18,000 - $18,300 million with GAAP earnings per diluted share in the range of $0.04 - $0.09 and non-GAAP earnings per diluted share in the range of $2.95 - $3.00
*** The Street sees FY EPS of $2.98 on revenue of $18.24 billion.
For earnings history and earnings-related data on eBay, Inc. (EBAY) click here.