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EBAY Gears Up to Report Q1 Earnings: What's in the Cards?

eBay EBAY is scheduled to report first-quarter 2023 results on Apr 26.

For the first quarter, the company expects net revenues of $2.46-$2.50 billion. On an FX-neutral basis, the year-over-year growth in revenues is anticipated to be 1-2%. On a spot rate basis, the company expects the same to be between -1% and 1%.

The Zacks Consensus Estimate for revenues is pegged at $2.48 billion, implying a decline of 0.1% from the year-ago reported figure.

The company anticipates non-GAAP earnings per share between $1.05 and $1.09. The consensus mark for earnings is pegged at $1.06, indicating a 0.9% rise from the previous-year quarter’s reported figure.

The company beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being 5.1%.

eBay Inc. Price and EPS Surprise

eBay Inc. Price and EPS Surprise
eBay Inc. Price and EPS Surprise

eBay Inc. price-eps-surprise | eBay Inc. Quote

Key Factors to Note

eBay's strength across Promoted Listings is likely to have aided its momentum among sellers in the first quarter with the help of its data-driven recommendations. This, in turn, is likely to have helped the company's advertisement business function effectively.

Moreover, the solid momentum across EBAY’s first-party advertising products is expected to have benefited the business in the to-be-reported quarter.

Further, the growing adoption of managed payments is expected to have aided the company in the quarter to be reported.

Also, eBay’s deepening focus on scaling managed payments globally is likely to have been another tailwind.

In addition, growing efforts to strengthen the Authenticity Guarantee program for delivering loyalty across luxury categories like watches, sneakers, handbags and fine jewelry are expected to have contributed to the gross merchandise volume of the company during the quarter under review.

eBay is expected to have gained momentum among collectible enthusiasts on the back of its robust tools. This is likely to have benefited its trading card business in the quarter to be reported.

This apart, the company is likely to have continued benefiting from its myFitment acquisition. myFitment’s technology is expected to have strengthened EBAY’s parts and accessories category.

However, softness in the Marketplace platform and weak momentum among active buyers are likely to impact the upcoming results.

Additionally, geopolitical uncertainties, rising inflationary pressure, low consumer confidence and increasing interest rates are expected to have acted as headwinds for eBay.

What Our Model Says

Our proven model predicts an earnings beat for eBay this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

eBay has an Earnings ESP of +0.56% and a Zacks Rank #3 at present.

Other Stocks to Consider

Here are some stocks worth considering as our model shows that these also have the right combination of elements to beat on earnings this season.

DigitalOcean DOCN has an Earnings ESP of +2.3% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

DOCN is scheduled to release first-quarter 2023 results on May 9. The Zacks Consensus Estimate for DOCN’s earnings is pegged at 29 cents per share, suggesting a jump from 7 cents per share reported in the prior-year quarter.

BILL Holdings, Inc. BILL has an Earnings ESP of +1.89% and a Zacks Rank #3 at present.

BILL Holdings is set to report third-quarter fiscal 2023 results on May 4. The Zacks Consensus Estimate for BILL’s earnings is pegged at 24 cents per share. The company incurred a loss of 8 cents per share in the year-ago quarter.

Ceridian HCM CDAY has an Earnings ESP of +9.09% and a Zacks Rank #3 at present.

CDAY is scheduled to report first-quarter 2023 results on May 3. The Zacks Consensus Estimate for CDAY’s earnings is pegged at 33 cents per share, suggesting an increase of 153.8% from the prior-year quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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