EBay Inc. (Nasdaq: EBAY), parent company of the world's largest internet auction website, is scheduled to report its first quarter FY 2011 financial results on July 20. In the last four quarters ended March 2011, eBay's reported EPS exceeded Wall Street's consensus estimates by margins in the range of 2.20 percent to 10.60 percent.
EBay's most prominent business is ebay.com, an internet auction website that connects individual buyers and sellers worldwide. During the second quarter, eBay completed the acquisition of GSI Commerce Inc., a leading provider of e-commerce and interactive marketing services. EBay acquired all of the outstanding shares of GSI's stock for $29.25 per share in cash, or a total consideration of approximately $2.4 billion. Also, during the quarter, eBay said that it has agreed to acquire Magento Inc., the creator of Magento, a leading open source e-commerce platform. Upon closing of the transaction, eBay will own 100 percent of the outstanding shares of Magento. Terms of the deal were not disclosed.
For Q1 FY 2011
- The company reported an increase of 16 percent in revenue to $2.5 billion, compared with revenue of $2.2 billion in the same quarter last fiscal.
- On GAAP basis net income was $476 million, up 20 percent, compared with net income of $398 million.
- GAAP earnings were $0.36 per diluted share, an increase of 20 percent, compared with earnings of $0.30 per diluted share.
- On a non-GAAP basis, net income was $619 million, up 12 percent, compared with net income of $554 million.
- On a non-GAAP basis, earnings were $0.47 per diluted share, compared with earnings of $0.42 per diluted share in the same quarter last year.
For FY 2010
For the full year, eBay Inc. posted $9.2 billion in revenue, net income on a GAAP basis of $1.8 billion, or $1.36 per diluted share, and non-GAAP net income of $2.3 billion, or $1.73 per diluted share. On a non-GAAP basis, excluding Skype, net revenue was up 13 percent for the full year compared with 2009 and earnings per diluted share were up 18 percent.
Company's Outlook
For second quarter FY 2011, eBay expects net revenue in the range of $2.550 to $2.650 billion with GAAP earnings per diluted share in the range of $0.36 to $0.37 and non-GAAP earnings per diluted share in the range of $0.45 to $0.46. For full year 2011, it expects net revenues in the range of $10.600 billion to $10.900 billion with GAAP earnings per diluted share in the range of $1.53 to $1.58 and non-GAAP earnings per diluted share in the range of $1.93 to $1.97.
Analysts Forecast
For the second quarter, analysts' EPS estimates range from a low of $0.45 to a high of $0.47 per share, compared with a consensus estimate of $0.40 per share to $0.46 per share in the year ago quarter. For this quarter, analysts' revenue estimates range from a low of $2.55 billion to a high of $2.65 billion, compared with a consensus estimate of $2.22 billion to $2.61 billion in the same quarter a year ago. For the second quarter, the consensus EPS forecast has remained unchanged at $0.46 per share for the last 90 days.
In the last 52-weeks, eBay's stock has been trading in the range of $19.16 to $35.35. The stock last traded at $32.74, gaining 0.47 points, or 1.46 percent, on July 1. During the second quarter, analysts at Stifel Nicolaus upgraded the stock to Buy from Hold.
