2 Graphs That Summarize eBay's Earnings Estimates

EBay Inc EBAY will announce its first quarter financial results on Wednesday afternoon.

Crowd-sourced earnings forecasts site Estimize provides information about what the crowd and the experts expect. The Street anticipates consensus EPS of $0.71 on revenue of $4.444 billion, while the crowd projects EPS of $0.72 on revenue of $4.470 billion. Both these estimates slightly surpass the company’s guidance for EPS of $0.70 on revenue of $4.400 billion.

Related Link: Morgan Stanley On eBay: 'Spin Is In, But Now What?'

The graph below shows the estimates and actual earnings history for eBay:

Estimize provides a look at how estimates have changed over time, too.

Related Link: Top Analyst Sees 'Lackluster' Q1 From eBay

Both the crowd and the Street have been losing confidence in the company, cutting earnings estimates since January. The divergence was largest in late-February and early-March; after that, the projections tended towards convergence.

What Analysts Think

Analysts at SunTrust previewed results, and reiterated a Neutral rating and a $57 price target. The firm said they expect the e-commerce to report a “lackluster” first quarter “overshadowed by the spin transition."

SunTrust models revenues of $4.43 billion and Non-GAAP operating income of 1.08 billion. However, they clarify that FX could have a larger impact than predicted. Regarding guidance, they think it will be subdued as the company gets ready for the spin.