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EBay Plus And Minuses In Balance Following Q2, SunTrust Analyst Says

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EBay's (NASDAQ: EBAY) negatives and positives appear to balance out in the wake of its second-quarter performance, SunTrust analyst Robert Peck said Wednesday.

EBay's bottom line beat the consensus by a penny, although its revenue missed expectations by a whisker.
http://www.benzinga.com/news/earnings/14/07/4707760/ebay-q2-net-ex-items...

But Peck, in a Thursday note, said $0.02 cents of eBay's earnings were derived from stock buybacks and $0.03 cents from a lower tax rate.

On the plus side in Peck's view, eBay noted in a conference Thursday call that it is "open minded" regarding strategic alternatives for its PayPal unit.

EBay settled a dispute over PayPal with activist investor Carl Icahn in April, agreeing to name Icahn's choice to a board seat. In exchange, Icahn backed down from proposing the sale of PayPal at an annual shareholders' meeting.

Also on the plus side: earnings gains from buybacks and lower taxes, as well as robust growth in payments revenue.

Negatives include decelerating growth rate for sold items, to nine percent from 11 percent; narrowing margins, higher customer acquisition costs and a third-quarter outlook below the Street's expectations.

Peck maintains a Neutral rating and $58 target on eBay. He cut his third-quarter forecast to earnings of $0.66 cents a share, on $4.35 billion in revenue, from $0.69 a share and revenue of $4.36 billion.

EBay traded recently at $51.51, up 1.6 percent.

Latest Ratings for EBAY

DateFirmActionFromTo
Nov 2014Evercore ISIDowngradesHoldSell
Oct 2014Morgan StanleyInitiates Coverage onUnderweight
Oct 2014Monness Crespi HardtInitiates Coverage onBuy

View More Analyst Ratings for EBAY
View the Latest Analyst Ratings

Posted-In: Carl Icahn PayPal Robert Peck SunTrustAnalyst Color Analyst Ratings

 

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