EBAY Stock: Anticipation of Strong Q2 Results Maintains Growth

    Author Ankit SinghaniaPosted on Categories RetailTags , , , , , , , , , , , , , , , , , , ,
    eBay stock

    EBAY stock has had a solid 2019 but as eBay Inc (NASDAQ:EBAY) looks to its earnings report on Wednesday, July 17, 2019, there is much that the company needs to improve to boost investor and stockholder confidence.

    So far this year, EBAY stock is up 38%, and it has benefitted greatly from the exceptional results that the company posted in Q1 2019, which boosted investor confidence leading to a 5% gain in stock following the report. Investors are anticipating that the expected Q2 2019 earnings report will also boost shares.

    Revenue Growth

    In Q1 2019, eBay year-over-year revenue beat analyst estimates and management projection with the company posting 2% growth. When adjusted for foreign currency exchange rates, revenue could have grown by 4%. The company’s revenue growth was attributed greatly to its robust marketplace sales as well as the increasing growth of buyers on the company’s platform.

    The company management has estimated Q2 2019 revenue to be between $2.64 and $2.69 billion, which is a 3% growth without factoring in the impact of exchange rates. Analysts have estimated the Q2 2019 revenue to be around $2.67 billion.

    EBAY stock is now up marginally and trading at $40.15.

    Profit Margins

    In Q1, the company surprised investors after delivering adjusted diluted EPS of $0.67, exceeding both management projections and analyst estimates. The company managed to reduce the low return on investment in marketing spend with the emphasis being on positive buyer growth. In the second quarter, the company expects EPS to range from $0.61 to $0.63.

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    Growth of Active Users

    The company can unlock its potential by attracting more users to its platform, and in Q1 2019 users grew to around 180 million, which a 4% year-over-year growth in global active users. Devin Wenig, the CEO of eBay, indicated that the company is taking steps aimed at enhancing positive active buyer growth.

    EBAY stock recently made a 52-week high of $40.55.

    What do you think about eBay’s earnings?

    Featured image: DepositPhotos © victoreus

    Author Ankit Singhania
    About the author: Based in India, Ankit is a financial content writer and stock market analyst. He has worked for almost a decade on several financial projects related to the stock market news, fundamental research and technical analysis for several websites. He obtained his Masters Degree In finance (MS – finance) from ICFAI. Currently, he serves as a financial consultant and technical analyst at Tradersinsights.com.