eBay’s Net Income Soars 96.7%, EPS Up 101.1% with 176% Return
GME•Over three years eBay’s net income rose 96.7% annually while EPS jumped 101.1%, delivering a 176% total return via profit growth and share buybacks. $2.2 billion operating cash flow funds a 5.6% shareholder yield 60% covered by cash, forcing reserves or debt use as Q2 revenue and GMV guidance slow.
1. Growth and Buyback Performance
eBay achieved a 96.7% average annual increase in net income and a 101.1% rise in EPS over three years, combining core profit expansion with systematic share repurchases. This dual-engine strategy propelled a 176% total stock return, highlighting the compounding impact of buybacks on shareholder value.
2. Cash Flow Position and Funding Sustainability
The company generated $2.2 billion in operating cash flow and allocated $486 million to capex, enabling a 5.6% net shareholder yield. However, only 60% of this payout is covered by organic cash flow, so eBay must rely on reserves or new debt amid rising borrowing costs to fund the remainder.
3. Forward Outlook and Key Risks
Forward guidance for Q2 forecasts slower revenue, GMV and EPS growth, signaling deceleration from recent strength. Investors should monitor potential marketplace disintermediation by social commerce platforms and track specific revenue and GMV thresholds in the upcoming earnings call to gauge sustainability.
