eBay Q2 revenue, profit beats analyst expectations on advertising offerings
EBAY•Outlook for Q3
- eBay sees Q3 revenue of $3.07 bln to $3.12 bln.
- Company expects Q3 gross merchandise volume of $22.0 bln to $22.4 bln.
- eBay expects Q3 diluted non-GAAP EPS of $1.36 to $1.42.
Drivers and analyst coverage
- Category leadership - Co said GMV growth reflects its leadership in categories important to buyers and sellers.
- Advertising revenue - First-party advertising products delivered $570 mln revenue, up 25% year-over-year.
- Innovation initiatives - Co cited expanded Authenticity Guarantee, AI-powered listing tools, and enhanced C2C experience as supporting momentum.
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 10 "strong buy" or "buy", 20 "hold" and 2 "sell" or "strong sell". The average consensus recommendation for the online services peer group is "buy." Wall Street's median 12-month price target for eBay Inc. is $114.00, about 4% above its August 4 closing price of $109.61. The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago.
Q2 results beat expectations
- Online marketplace's Q2 revenue rose 15%, beating analyst expectations.
- Adjusted EPS for Q2 beat analyst expectations.
