For the second quarter, the company expects net revenues of $2.98-$3.03 billion. On a FX-neutral basis, year-over-year growth in revenues is anticipated to be 8-10%.
The Zacks Consensus Estimate for revenues is pegged at $3.01 billion, implying growth of 5% from the year-ago reported figure.
The consensus mark for earnings has been stable at 96 cents per share over the past 30 days. This indicates a decline of 11.1% from the year-ago reported figure.
The company beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, with an average of 5.05%.
Let’s see how things have shaped up for this announcement.
Key Factors to Note
eBay’s growth initiatives, which are based on enhancing the seller experience by offering innovative seller tools and delivering a better buyer experience by utilizing structured data, are anticipated to have contributed well to its second-quarter performance.
Strong momentum across the Marketplace platform is expected to have driven top-line growth of the company in the to-be-reported quarter.
Increased conversions on its platform alongwith strengthening marketing initiatives are anticipated to have aided the second-quarter performance of the Marketplace platform.
The growing efforts toward the implementation of Artificial Intelligence through personalization, image search technology and customer support are expected to have enhanced the Marketplace platform.
All these factors are likely to have driven growth in the company’s transaction revenues in the quarter under review.
eBay’s strength across Promoted Listings is expected to have continued aiding its momentum across sellers on the back of data-driven recommendations in the second quarter.
The growing adoption of the company’s managed payments is expected to have continued benefiting it in the quarter to be reported. eBay’s deepening focus on scaling managed payments globally is likely to have been another tailwind.
Apart from this, in the second quarter, eBay introduced an online regulatory portal, by which the participating authorities from all across the world can remove listings that are illegal and unsafe for customers shopping online. This is expected tohave driven momentum across customers and online shop
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eBay (EBAY) to Report Q2 Earnings: What’s in the Offing?