EBay to report 3rd-qtr results after the market close
By APWednesday, October 21, 2009
Ahead of the Bell: EBay to report 3Q results
SAN FRANCISCO — When eBay Inc. reports its third-quarter earnings Wednesday after the closing bell, investors may get a better sense of how well the company’s ongoing efforts to refresh its online marketplace are working.
Analysts polled by Thomson Reuters expect the San Jose-based online marketplace operator to report adjusted earnings of 37 cents per share on $2.14 billion in revenue. EBay forecast a profit of 22 cents to 24 cents per share — or 34 cents to 36 cents per share when excluding certain items — on $2.05 billion to $2.15 billion in revenue.
In a recent client note, Brigantine Advisors analyst Colin Gillis predicted that the results will “showcase the fruits of eBay’s restructuring efforts.”
He expects gross merchandise volume, which measures the value of all transactions on eBay, excluding vehicles, grew sequentially for the second quarter in a row. He also expects that the number of fixed-price “Buy it Now” listings on eBay will make up more than half of GMV for the second quarter in a row.
Since 2008, eBay has been making changes to improve buyers’ trust, concentrating more on charging fees for items that sell than on fees for listing items, and focusing on the market for offseason and liquidation goods.
