EBAY Gears Up to Post Q1 Earnings: What's in Store for the Stock?

Core Viewpoint - eBay is set to report its first-quarter 2025 results on April 30, with expectations of total revenues between $2.52 billion and $2.56 billion, and diluted non-GAAP earnings per share between $1.32 and $1.36 [1][2]. Revenue Expectations - The Zacks Consensus Estimate for revenues is currently at $2.55 billion, reflecting a 0.35% decrease from the previous year's quarter [2]. - The consensus for earnings has remained at $1.34 per share, indicating a 7.20% increase from the year-ago quarter's $1.25 [3]. Performance Insights - eBay has consistently surpassed the Zacks Consensus Estimate for earnings in the last four quarters, with an average positive surprise of 3.40% [3]. Factors Influencing Performance - eBay is expected to benefit from momentum in Focus Categories, particularly Motors Parts & Accessories, Trading Cards, and Refurbished goods [4]. - Strategic enhancements, such as the expansion of managed shipping in the UK and the use of AI-driven tools, are likely to support gross market value (GMV) trends and modest revenue growth [4]. Monetization and Cost Considerations - The introduction of buyer protection fees for UK C2C transactions and improvements in the managed shipping program are anticipated to contribute to monetization, although these initiatives were only partially implemented [5]. - Operating margins are guided between 29% and 29.4%, but margin expansion may be constrained by increased depreciation expenses and costs related to mergers and acquisitions [7]. Market Conditions - eBay's revenue performance may be impacted by slower consumer demand in key international markets, particularly in the UK and Germany, where macroeconomic softness is evident [8]. - While the U.S. market shows more resilience, international weaknesses could offset gains from Focus Categories and advertising [8].