EBay expected to report slight 2nd-qtr growth

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Earnings Preview: EBay Inc.

SAN FRANCISCO — EBay Inc. is set to report its second-quarter earnings after the stock market closes on Wednesday.

WHAT TO WATCH FOR: EBay’s growth generally comes from its main business — its online auction and e-commerce Web sites — and from online payments business PayPal.

EBay has been trying to improve the experiences shoppers have on its main site by doing things like reducing the upfront fees it charges sellers. In the most recent quarter, the company launched a fashion microsite, fashion.ebay.com, to update investors on these efforts.

EBay, based in San Jose, Calif., may update investors Wednesday on how it’s beefing up its mobile offerings. The company has been focusing on mobile applications that let people shop on eBay or transfer money through PayPal right from their smart phones. It released several new and updated applications during the quarter, including one for Apple Inc.’s touch-screen iPad.

Also during the quarter, eBay bought RedLaser, which makes an iPhone app that lets people scan barcodes on products and gives online price comparisons.

WHY IT MATTERS: With its large online marketplace and other Web-based businesses, eBay can be a good gauge for how Web businesses are faring in general and the health of online retail in particular.

WHAT’S EXPECTED: Analysts polled by Thomson Reuters, who typically exclude one-time items, on average expect adjusted earnings of 39 cents per share and revenue of $2.17 billion.

LAST YEAR’S QUARTER: In the second quarter of 2009, eBay earned $327.3 million, or 25 cents per share, on $2.10 billion in revenue. The company earned 37 cents per share excluding one-time items.