Group 1 - eBay reported quarterly earnings of $1.25 per share, exceeding the Zacks Consensus Estimate of $1.20 per share, and showing an increase from $1.07 per share a year ago, representing an earnings surprise of 4.17% [1] - The company posted revenues of $2.58 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.02%, and showing a slight increase from $2.56 billion year-over-year [2] - eBay has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Group 2 - eBay shares have increased approximately 14.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.36 on revenues of $2.6 billion, and for the current fiscal year, it is $5.23 on revenues of $10.59 billion [7] Group 3 - The Internet - Commerce industry, to which eBay belongs, is currently ranked in the top 18% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8] - The performance of eBay's stock may also be influenced by the overall industry outlook, as empirical research indicates a strong correlation between near-term stock movements and earnings estimate revisions [5][8]

Core Insights - eBay reported better-than-expected financial results for Q4 2024, with Non-GAAP EPS of $1.25 and revenue of $2.6 billion, surpassing analyst estimates and its own guidance [2][3] - The company achieved a year-over-year increase in Non-GAAP EPS of 16.8% and a slight revenue increase of 0.7% [3][6] - eBay's GAAP operating margin improved significantly to 21.1%, up from 16.0% in the previous year [3][8] Financial Performance - Non-GAAP EPS reached $1.25, exceeding the estimate of $1.20 and up from $1.07 in Q4 2023 [3] - Revenue for Q4 2024 was $2.6 billion, slightly above the estimated $2.57 billion and a marginal increase from $2.56 billion in Q4 2023 [3] - GAAP operating margin improved to 21.1%, reflecting effective cost management [3][8] - Free cash flow was reported at $560 million, a significant recovery from a negative $3 million in the previous year [3] Business Overview - eBay operates a global digital marketplace, focusing on enhancing revenue streams through managed payments and advertising [4][5] - The Gross Merchandise Volume (GMV) rose by 4% year-over-year to $19.3 billion, indicating successful user engagement [7] Strategic Initiatives - The company is investing in AI-powered listing tools and partnerships, including integration with Meta Platforms' Facebook Marketplace, to enhance market exposure [7] - eBay's recent investments in the U.K. market aim to streamline seller processes and improve buyer experience [9] Shareholder Returns - eBay repurchased $900 million in shares and distributed $128 million in dividends during the quarter, highlighting its financial health [8] Future Outlook - Management projects revenue for Q1 2025 to be between $2.52 billion and $2.56 billion, with Non-GAAP EPS expected to range from $1.32 to $1.36 [10] - The company maintains a cautiously optimistic outlook for revenue growth, projecting modest negative to positive FX-neutral year-over-year growth of -1% to 1% [11]

Revenue and Earnings - Revenue for Q4 2024 was $2.6 billion, up 1% year-over-year on an as-reported and FX-Neutral basis[5]. - GAAP net income for Q4 2024 was $680 million, or $1.40 per diluted share, a decrease of 7% compared to Q4 2023[9]. - Non-GAAP net income for Q4 2024 was $607 million, or $1.25 per diluted share, an increase of 8% year-over-year[9]. - eBay's net revenues for Q4 2024 were $2,579 million, a slight increase from $2,562 million in Q4 2023, resulting in a year-over-year growth of 0.7%[28]. - eBay's net income for the year ended December 31, 2024, was $1,975 million, down from $2,767 million in 2023, representing a decrease of about 28.6%[28]. - eBay's diluted net income per share for the year ended December 31, 2024, was $3.94, down from $5.19 in 2023, reflecting a decline of approximately 24.1%[28]. - Non-GAAP net income from continuing operations for the year ended December 31, 2024, increased to $2,445 million, up 8.2% from $2,260 million in 2023[60]. - Non-GAAP diluted net income per share for Q4 2024 was $1.25, an increase of 16.8% from $1.07 in Q4 2023[60]. Gross Merchandise Volume (GMV) - Gross Merchandise Volume (GMV) for Q4 2024 was $19.3 billion, representing a 4% increase on an as-reported basis and a 3% increase on an FX-Neutral basis[5]. - Gross Merchandise Volume (GMV) for the U.S. was $9,043 million, a 2% increase year-over-year, while international GMV was $10,277 million, a 6% increase[36]. - Total Gross Merchandise Volume for the quarter was $19,320 million, representing a 4% increase compared to the same quarter last year[36]. Cash Flow and Investments - Cash and cash equivalents increased from $2,493 million at the end of Q4 2023 to $3,286 million at the end of Q4 2024, marking a rise of 31.8%[32]. - Free cash flow for Q4 2024 was $560 million, a significant increase from a negative $3 million in Q4 2023[63]. - The company reported a change in fair value of equity investments, with a realized gain of $57 million from shares sold in Adyen for the year ended December 31, 2024[60]. - The company experienced a significant change in fair value of equity investments in Adevinta, with a loss of $451 million recorded in Q4 2023[60]. - Total purchases of property and equipment for the year ended December 31, 2024, were $458 million, compared to $456 million in 2023[63]. Operating Performance - eBay achieved a GAAP operating margin of 21.1% in Q4 2024, an increase from 16.0% in the same period last year[14]. - GAAP operating income for the quarter ended December 31, 2024, was $543 million, compared to $410 million in the prior year[58]. - Non-GAAP operating income for the same period was $698 million, reflecting a slight increase from $686 million year-over-year[58]. - Operating expenses for the year ended December 31, 2024, totaled $5,085 million, down from $5,338 million in 2023, showing a reduction of approximately 4.7%[28]. Shareholder Returns - eBay returned $1.0 billion to stockholders in Q4 2024, including $900 million in share repurchases and $128 million in cash dividends[6]. Guidance and Projections - eBay's guidance for Q1 2025 projects revenue between $2.52 billion and $2.56 billion, with GMV expected between $18.3 billion and $18.6 billion[12]. - The company provided guidance for net revenues between $2.52 billion and $2.56 billion for the three months ending March 31, 2025[43]. - The projected Gross Merchandise Volume for the same period is estimated to be between $18.3 billion and $18.6 billion[43]. Tax and Liabilities - The company expects a non-GAAP effective tax rate of 16.5% based on current long-term projections[56]. - The effective tax rate for continuing operations was 10.3% in Q4 2024, compared to 29.4% in Q4 2023[60]. - The company’s total liabilities decreased from $15,224 million in 2023 to $14,207 million in 2024, a reduction of about 6.7%[26].

Core Insights - eBay reported strong financial results for Q4 and full year 2024, achieving three consecutive quarters of GMV growth and laying a solid foundation for sustainable long-term growth in 2025 [2][6][8] Financial Highlights - Q4 revenue reached $2.6 billion, a 1% increase year-over-year, while full year revenue was $10.3 billion, up 2% [6][8] - Gross Merchandise Volume (GMV) for Q4 was $19.3 billion, up 4% year-over-year, and full year GMV was $74.7 billion, also up 2% [6][8] - GAAP net income for Q4 was $680 million, or $1.40 per diluted share, while full year GAAP net income was $2.0 billion, or $3.95 per diluted share [7][8] - Non-GAAP net income for Q4 was $607 million, or $1.25 per diluted share, and for the full year, it was $2.4 billion, or $4.88 per diluted share [7][8] - Operating cash flow for Q4 was $677 million, and free cash flow was $560 million [7][14] Business Developments - eBay made significant investments in the U.K. market to enhance the customer experience for consumer-to-consumer sellers, including the introduction of a simplified listing flow and the elimination of final value fees for C2C sellers [6][7] - The company expanded its AI-powered bulk listing tool to all categories in the U.S., facilitating easier listing creation for sellers [6][7] - eBay's advertising offerings generated $445 million in revenue during Q4, representing 2.3% of GMV, with first-party advertising products increasing by 18% year-over-year [6][7] - The introduction of Klarna's 'buy now, pay later' payment options in multiple European countries aims to enhance payment flexibility for shoppers [6][7] Shareholder Returns - eBay returned $1.0 billion to stockholders in Q4, including $900 million in share repurchases and $128 million in cash dividends [6][7] - For the full year, the total return to stockholders was $3.7 billion, comprising $3.1 billion in share repurchases and $533 million in cash dividends [7][8] Future Outlook - eBay provided guidance for Q1 2025, projecting revenue between $2.52 billion and $2.56 billion, with GMV expected to be between $18.3 billion and $18.6 billion [11][33]

Despite outperforming the S&P year-to-date, there are several signals flashing caution on eBay Inc. (NASDAQ: EBAY ) and its prospects, highlighted by Seeking Alpha's Quant Rating of 3.19 (hold). As an investor"In investing, what is comfortable is rarely profitable." - Robert Arnott I am a "Value" and "Growth" retail investor, looking for opportunities in emerging and undervalued stocks, often counter to conventional thought. I use fundamentals to back up my argument, and also like to highlight stocks which ...

Core Viewpoint - eBay is set to report its fourth-quarter 2024 results on February 26, with expectations of modest revenue growth and potential impacts from new initiatives and macroeconomic factors [1][2][6]. Revenue Expectations - eBay anticipates fourth-quarter revenues between $2.53 billion and $2.59 billion, with a year-over-year change expected to be between -1% and 1% on both FX-neutral and spot rate bases [2] - The Zacks Consensus Estimate for revenues is $2.58 billion, indicating a 0.64% increase from the previous year [2]. Earnings Projections - The company expects non-GAAP earnings per share to be between $1.17 and $1.22, reflecting a year-over-year growth of 9% to 14% [3] - The consensus estimate for earnings is $1.20 per share, suggesting a rise of 12.15% from the same quarter last year [3]. Strategic Initiatives - eBay's UK C2C initiative aims to enhance gross merchandise volume (GMV) by removing seller fees while introducing buyer fees in early 2025, which is expected to increase listings and seller engagement [4] - Although the fourth-quarter results may show limited benefits from this initiative, it is projected to unlock a larger total addressable market and drive long-term revenue growth [4]. Advertising Revenue Growth - eBay's advertising revenues grew by 11% year-over-year in the third quarter, reaching $408 million, with first-party ads increasing by 14% [5] - Continued growth in advertising revenues is expected to help offset pressures from the UK C2C initiative in the fourth quarter [5]. Market Challenges - The fourth quarter is likely to face challenges due to a shorter holiday shopping season and distractions from U.S. elections, which may have shifted consumer spending patterns [6] - These factors are expected to negatively impact transaction volumes and overall revenue growth for the quarter [6]. Technological Enhancements - eBay employs AI-powered tools for listing and bulk listing, which streamline the selling process and enhance seller engagement [7] - These tools are anticipated to improve operational efficiency and positively influence the bottom line in the fourth quarter [7].

Core Viewpoint - Analysts project eBay's quarterly earnings to be $1.20 per share, reflecting a 12.2% year-over-year increase, with revenues expected to reach $2.58 billion, a 0.6% increase from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate has been revised 1.2% lower in the last 30 days, indicating a collective reevaluation by analysts [2]. - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3]. Key Metrics Projections - Analysts estimate eBay's Gross Merchandise Volume (GMV) at $19.06 billion, up from $18.59 billion year-over-year [5]. - Active Buyers are projected to reach 133.32 million, compared to 132 million in the previous year [5]. - Gross Merchandise Volume - International is expected to be $9.86 billion, an increase from $9.70 billion reported in the same quarter last year [5]. - Gross Merchandise Volume - US is forecasted at $9.14 billion, up from $8.89 billion in the same quarter last year [6]. Stock Performance - eBay shares have increased by 7.3% over the past month, outperforming the Zacks S&P 500 composite, which rose by 2.2% [7]. - eBay holds a Zacks Rank 3 (Hold), suggesting it is expected to mirror overall market performance in the near future [7].

Core Insights - eBay has completed the acquisition of Caramel, an online automotive transaction solution provider, enhancing its vehicle marketplace capabilities [1][4] - Caramel's platform simplifies the complexities of vehicle sales, including paperwork, ownership transfer, financing, and transportation [2][6] - The integration of Caramel's technology aims to foster a more secure and transparent vehicle marketplace, improving buyer and seller confidence [3] Company Overview - eBay Inc. is a global commerce leader, connecting millions of sellers and buyers across more than 190 markets, with a gross merchandise volume exceeding $73 billion in 2023 [5] - Caramel, founded in 2021 and headquartered in Los Angeles, offers a seamless end-to-end vehicle purchase experience, including identity verification and financing [6] Strategic Implications - The partnership between eBay and Caramel aligns with their shared goals of building vibrant communities and enhancing the car buying experience for consumers [3] - Caramel will continue to operate through its own platforms and various marketplace partners, expanding its reach beyond eBay [2]

Core Viewpoint - eBay is positioned as a strong candidate for investors due to its consistent performance in beating earnings estimates, particularly in the last two quarters, with an average surprise of 2.64% [1] Earnings Performance - For the most recent quarter, eBay reported earnings of $1.19 per share, exceeding the expected $1.18 per share, resulting in a surprise of 0.85% [2] - In the previous quarter, eBay's actual earnings were $1.18 per share against an expectation of $1.13 per share, leading to a surprise of 4.42% [2] Earnings Estimates - There has been a favorable change in earnings estimates for eBay, with a positive Zacks Earnings ESP of +0.58%, indicating bullish sentiment among analysts regarding the company's earnings prospects [3][6] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat [6] Predictive Metrics - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [4] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [5] Investment Strategy - Investors are encouraged to check a company's Earnings ESP prior to quarterly releases to enhance the likelihood of successful investment decisions [7]

EBay plans to make it easier to buy and sell vehicles on its platform by acquiring online automotive transaction solution provider Caramel.Caramel’s platform facilitates vehicle sales on its own site or app, through independent dealers, or through its marketplace and auction partners, eBay said in a Jan. 15 press release.Ebay signed a definitive agreement to acquire Caramel Jan. 11 and expects closing to occur during the first quarter, subject to customary conditions, according to the release.“With Caramel ...