Bank of America Releases eBay's 4Q Preview
Bank of America expects eBay (NASDAQ: EBAY) to report a solid 4Q, however, FX may negatively impact outlook.
Bank of America reports that, “We expect eBay to report modest 4Q EPS upside ($0.01 to $0.02) to consensus. Our rev./EPS estimates of $3.30bn/$0.57 are in-line with Street at $3.32bn/$0.57. Revenues (esp. cross border trade) will be impacted by currency, but hedging and US marketplace and PayPal strength (strong ChannelAdvisor and Mercent data) should help EPS. In our view, eBay's Int'l market GMV (Street has low visibility, we expect 9% ex-FX) & PayPal growth will be a leading indicator and important driver of sentiment for the Internet sector.”
Bank of America maintains its Buy rating and $39.00 PT on eBay, which closed at $30.62 on Friday.
