Macquarie Reaffirms Neutral Rating for eBay Inc (EBAY)

Ebay Reports Quarterly Earnings

Ebay Reports Quarterly Earnings

EBay shares fell by nearly 4 percent, to close at $32.53 after the company said late Wednesday that for its second quarter, it expects to earn between 43 cents and 45 cents a share, excluding one-time items, on revenue in a range of $2.28 billion to $2.32 billion.

Net income jumped to $1.04bn, or 94 cents per share, from $482m, or 41 cents per share. The increased marketing and product development costs led to a 10.5% increase in operating expenses in the quarter, which led to an 11% decline in operating income to $546 million. During the quarter, the company generated $582.0M of operating cash flow and $447 million of free cash flow from continuing operations. The company also repurchased $350 million of its common stock in the quarter, according to eBay.

Ebay's revenue and profit grew in the first quarter of 2017 as more shoppers visited its online marketplaces and efforts to revamp its platform paid off, however it forecast second quarter profit will fall below expectations.

EBay will close the deal and upon deal close, it will no longer report active buyer GMV and related financials for eBay India.

Top line growth was driven by a 15% increase in StubHub sales and a 6% increase in Marketing & Advertising revenue over the prior year quarter. The improved performance was driven by Marketplace platforms, which delivered gross merchandise volume of United States dollars 20.95 billion in the first quarter, up 2.4 percent on a reported basis, with the company adding two million active buyers across its platforms, for a total of 169 million worldwide. In the past one year, the company shares have gone up by 14%.

Further, StubHub became the official ticket resale marketplace for the Los Angeles Angels and Toronto Blue Jays.

White House pushes uncertain bid to revive health care bill
States also could request waivers to Obamacare's ban on insurers charging sick customers higher premiums than healthy customers. But the reports say it remains unclear whether the legislation will win the support it needs in Congress.

I'm very excited about this new exclusive partnership, which enables us to increase our penetration in India by making eBay's global inventory accessible to a significantly larger set of Indian consumers.

Let's zoom in to see what drove eBay's business as it kicked off the new year, as well as what investors can expect going forward. In exchange for an equity stake, eBay will make a $500 million cash investment in and sell its business to Flipkart. In addition, the two companies agreed to pursue exclusive cross-border e-commerce agreements with each other, which could help the two of them compete with Amazon in both the USA and India.

eBay (NASDAQ:EBAY) last released its quarterly earnings data on Wednesday, April 19th. The consensus estimates are $0.47 in EPS and $2.32 billion in revenue in the second quarter.

eBay's balance sheet is highly leveraged, with total debt of $9 billion eclipsing cash and short-term investments balance of $6.8 billion. It reported adjusted earnings that were up 2% to 49 cents, beating the consensus of 48 cents, but gave full-year guidance that fell short of Wall Street estimates.

Revenue in the current quarter will be $2.28 billion to $2.32 billion, San Jose, California-based EBay said Wednesday in a statement.

India is not the first country where eBay has made an exit.

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