EBay Sales Growth, Holiday Advertising in Focus -- Earnings Preview
October 18 2017 - 5:59AM
Dow Jones News
By Laura Stevens
EBay Inc. is scheduled to announce its third-quarter earnings
after the market closes on Wednesday. Here's what you need to
know:
EARNINGS FORECAST: Analysts polled by Thomson Reuters expect
eBay to earn 48 cents per share, compared with adjusted results of
45 cents a year ago. (The company earned 36 cents per share
unadjusted.) The company forecast adjusted third-quarter earnings
of between 46 cents and 48 cents.
REVENUE FORECAST: Revenue of $2.37 billion is forecast by the
analysts, compared with $2.22 billion a year ago. EBay expected
revenue of between $2.35 billion and $2.39 billion.
WHAT TO WATCH:
-- SALES GROWTH: Analysts expect another quarter of growth in
gross merchandise volume, a sign of health as the company continues
to improve its website design and search results and banks on
better traffic thanks to its new advertising campaign. The company
has also added price-match and three-day delivery guarantees. App
usage growth increased in the quarter, say Aegis Capital Corp.
analysts, signaling "GMV growth is likely to meet or exceed our
expectations."
-- HOLIDAYS: EBay has been cranking up its advertising campaigns
lately, a trend likely to continue through the holidays. Analysts
think it's paying off. Expect executives to shed some light on
their strategy for the all-important season, including potential
promotions to attract increasingly last-minute online shoppers to
the site. Cowen analysts are looking for "color around the
effectiveness of the new brand marketing campaigns, which began in
the U.S. at the end of 2Q17 and expanded internationally during
Q3."
-- AMAZON ALTERNATIVE?: Chief Executive Devin Wenig has promised
an update on how brands are deciding to sell on the site, and it
could come on Wednesday's call. It's "seeing a step-up in
conversations with, and activity by, established brands looking to
set-up stores and sell on eBay," write Citi analysts. It could
prove an Amazon alternative for some.
Write to Laura Stevens at laura.stevens@wsj.com
(END) Dow Jones Newswires
October 18, 2017 05:44 ET (09:44 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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