Here's What to Expect From eBay's Next Earnings Report

eBay Inc. (EBAY), headquartered in San Jose, California, is a global e-commerce leader connecting millions of buyers and sellers through its online marketplace. With a market cap of $32.81 billion, eBay facilitates transactions across diverse product categories, serving individuals and businesses worldwide. The company is scheduled to announce its Q3 earnings after the market closes on Wednesday, Oct. 30.

Ahead of the event, analysts expect EBAY to report a profit of $0.94 per share, up 23.7% from $0.76 in the year-ago quarter. The company has surpassed or met Wall Street’s EPS estimates in the last two quarters while missing on two other occasions. 

eBay's adjusted earnings of $0.88 per share for the last quarter matched the consensus estimate. Strong growth in first-party advertising drove eBay's Q2 performance, while weakness in third-party ads and flat active buyer growth limited further gains.

For fiscal 2024, analysts expect EBAY to report EPS of $3.86, up 22.9% from $3.14 in fiscal 2023.  

EBAY stock is up 49.8% YTD, significantly outperforming the broader S&P 500 Index's ($SPX) 22.5% gains and the ProShares Online Retail ETF’s (ONLN) 24.9% gain over the same time frame.

eBay expanded its product offerings, partnerships, and innovative features, including the acquisition of Goldin, enabling Venmo as a payment method, launching AI-powered tools, and entering high-profile collaborations like with McLaren F1 and Condé Nast.

Moreover, EBAY's stock gained 1.1% on July 31 after its Q2 earnings release. Its revenue surged 1.3% year over year to $2.57 billion, beating Wall Street’s estimates by 1.8%. 

The consensus opinion on EBAY stock is moderately optimistic, with an overall “Moderate Buy” rating. Of 28 analysts covering the stock, eight advise a “Strong Buy” rating, 19 indicate a “Hold,” and one advises “Strong Sell.”

EBAY’s average analyst price target of $59.70 suggests that the stock is currently trading at a premium.

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On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.