Market Overview

EBay Investors Shouldn't Be Too Dismayed By 2017 Guidance

EBay Investors Shouldn't Be Too Dismayed By 2017 Guidance

eBay Inc (NASDAQ: EBAY) reported broadly in-line Q4 results and announced full-year guidance marginally ahead of expectations.

eBay’s turnaround seems “firmly underway,” given the company’s increased investment and accelerating guidance, Benchmark's Daniel Kurnos said in a report.

Kurnos maintained a Buy rating on the company, while raising the price target from $37 to $39.

Good Results

eBay reported its Q4 EBITDA ahead of the consensus by $6 million.

“A solid holiday quarter helped drive the record results in the Marketplace segment and mobile acceleration was an unexpected tailwind that bodes well for the next few quarters,” Kurnos mentioned.

Good Guidance

The 2017 guidance implied “modest sustained performance” in the first half of the year and a “significant ramp” in the second half, the analyst stated. The mid-point of the 2017 revenue guidance came in higher than the consensus by $40 million.

Given that eBay has historically announced conservative guidance and that this year the company has a more aggressive investment plan, “we believe the turnaround is underway, with results likely benefiting from operational leverage as the structured data initiative continues to move forward at an accelerated pace,” Kurnos commented. He reduced the EPS estimates for 2017 and 2018 by $0.07 to $2.01 and by $0.10 to $2.30, respectively.

Latest Ratings for EBAY

Jul 2020JP MorganMaintainsNeutral
Jul 2020UBSMaintainsNeutral
Jul 2020StifelMaintainsBuy

View More Analyst Ratings for EBAY
View the Latest Analyst Ratings


Related Articles (EBAY)

View Comments and Join the Discussion!

Posted-In: Benchmark Daniel KurnosAnalyst Color Long Ideas Price Target Reiteration Analyst Ratings Trading Ideas Best of Benzinga

Latest Ratings

AAPDA DavidsonInitiates Coverage On154.0
PEGAJP MorganInitiates Coverage On128.0
MBIIAegis CapitalMaintains1.7
ACCDCredit SuisseMaintains40.0
TPRCredit SuisseMaintains17.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at