24/7 Wall St.
10-15-2008, 05:50 PM
24/7 Wall St. Daily News
http://www.247wallst.com/images/2008/10/15/angrybear.jpg</img> (http://247wallstreet.typepad.com/.shared/image.html?/photos/uncategorized/2008/10/15/angrybear.jpg)Ebay (EBAY) was dead before it got started. The stock fell 13.6% during the regular session and came with a penny of its 52-week low at $15.01. Investors kept up their pessimism after hours, taking the stock down to under $14 before the company spoke a word about earnings
Analysts expected EPS to be flat at $.41. Estimates were for sales to hit $2.13 billion.
As it turned out, there was something to be excited about. Ebay had third quarter revenue of $2.12 billion, up $228 million from the same quarter last year. Net income was $492 million, or $.38 per diluted share, and non-GAAP net income was $592 million, or $.46 per diluted share.
All that Wall St. cared about was the $.38 number
After earnings came out, the stock struggled to hold $14.
In the US, the company is not growing at all. The Marketplaces business unit, which consists of eBay, Shopping.com, StubHub, Kijiji and other ecommerce sites, had a solid third quarter, generating $1.38 billion in revenue, representing 4% year-over-year growth, 53% of which was generated outside the U.S.
PayPal continued to be the firm's strong division. PayPal had a strong quarter with $597 million in net revenue, an increase of 27% year-over-year. It is wonder that EBAY does not spin it out to shareholders.
No one was excited by guidance. eBay said expects net revenues in the range of $2.020 to $2.170 billion with GAAP earnings per diluted share in the range of $.25 to $.27.
If the market keep slipping, this could be a $12 stock.
Douglas A. McIntyre
http://feeds.feedburner.com/~f/typepad/RyNm?i=Y2pIM</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=Y2pIM) http://feeds.feedburner.com/~f/typepad/RyNm?i=Ma5dM</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=Ma5dM) http://feeds.feedburner.com/~f/typepad/RyNm?i=2SqOm</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=2SqOm)
complete story here... (http://www.247wallst.com/2008/10/ebays-ebay-wors.html)
http://www.247wallst.com/images/2008/10/15/angrybear.jpg</img> (http://247wallstreet.typepad.com/.shared/image.html?/photos/uncategorized/2008/10/15/angrybear.jpg)Ebay (EBAY) was dead before it got started. The stock fell 13.6% during the regular session and came with a penny of its 52-week low at $15.01. Investors kept up their pessimism after hours, taking the stock down to under $14 before the company spoke a word about earnings
Analysts expected EPS to be flat at $.41. Estimates were for sales to hit $2.13 billion.
As it turned out, there was something to be excited about. Ebay had third quarter revenue of $2.12 billion, up $228 million from the same quarter last year. Net income was $492 million, or $.38 per diluted share, and non-GAAP net income was $592 million, or $.46 per diluted share.
All that Wall St. cared about was the $.38 number
After earnings came out, the stock struggled to hold $14.
In the US, the company is not growing at all. The Marketplaces business unit, which consists of eBay, Shopping.com, StubHub, Kijiji and other ecommerce sites, had a solid third quarter, generating $1.38 billion in revenue, representing 4% year-over-year growth, 53% of which was generated outside the U.S.
PayPal continued to be the firm's strong division. PayPal had a strong quarter with $597 million in net revenue, an increase of 27% year-over-year. It is wonder that EBAY does not spin it out to shareholders.
No one was excited by guidance. eBay said expects net revenues in the range of $2.020 to $2.170 billion with GAAP earnings per diluted share in the range of $.25 to $.27.
If the market keep slipping, this could be a $12 stock.
Douglas A. McIntyre
http://feeds.feedburner.com/~f/typepad/RyNm?i=Y2pIM</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=Y2pIM) http://feeds.feedburner.com/~f/typepad/RyNm?i=Ma5dM</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=Ma5dM) http://feeds.feedburner.com/~f/typepad/RyNm?i=2SqOm</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=2SqOm)
complete story here... (http://www.247wallst.com/2008/10/ebays-ebay-wors.html)