eBay Set for Q4 Earnings with Mixed Analyst Sentiments

eBay is poised to reveal Q4 earnings on Feb. 25. Analysts forecast a profit of $0.96 per share, reflecting a 21.5% increase YoY, though guidance concerns loom. eBay's stock performance remains under pressure while analysts hold a cautious outlook.

Date: 24-01-2025

AI Rating: 5

Earnings Per Share (EPS)
eBay is expected to report a profit of $0.96 per share for Q4, up from $0.79 per share in the previous year's quarter, indicating a 21.5% growth. Furthermore, analysts project an EPS of $3.87 for fiscal 2024, up 23.3% from $3.14 in fiscal 2023.

Performance Context
Though eBay reported adjusted earnings of $1.19 per share and revenue of $2.6 billion in Q3, the stock faced an 8.2% drop afterwards due to disappointing guidance, especially concerning the holiday shopping season. The guidance for Q4 revenue between $2.5 billion to $2.6 billion was below analyst expectations, which raises concerns among investors.

Investor Concerns
Investor uncertainty is heightened by worries about slowing active buyer growth, which was just 1% year-over-year at 133 million. While the company has reported solid growth in its advertising sector, the missed revenue guidance may overshadow these gains.

Potential Growth Opportunities
eBay's stock experienced a surge following news of a collaboration with Meta Platforms (Facebook), which could provide eBay with additional exposure to a wider audience, potentially aiding its stagnating growth metrics.

Analyst Ratings
Among 29 analysts, there seems to be a cautiously optimistic sentiment surrounding eBay’s stock, as indicated by the ratios of

Stocks: EBAY