In advance of eBay Inc EBAY’s first-quarter earnings, JMP Securities reiterated a Market-Perform rating anticipating no major disruptions to business.
“While we expect eBay to report 1Q17 results that are relatively in line with our and consensus expectations, we believe these product changes improve eBay’s competitive positioning longer term,” JMP analysts wrote in a Tuesday note.
In Focus
They will primarily watch for the company’s structured data progress, Spring Seller Update and product upgrades, including plans for a homepage overhaul and new shipping requirements. Each feature is expected to meaningfully affect this year’s holiday shopping. The homepage, for instance, will encourage sales by automatically populating products tailored to user interests, “which could improve overall product velocity.”
The Spring Seller Update will also prove notable in announcing guidance possibly adjusted for increasing Final Value Fees, as well as highlighting eBay’s recent rollout of promoted listings ads.
“While we are encouraged with eBay’s product announcements and roadmap — all likely a direct results of continued structured data progress — we believe it remains relatively early in eBay’s turn-around and the risk/reward in shares remains balanced,” analysts wrote.
JMP estimates first-quarter total gross merchandise volume of $21.2 billion, revenue of $2.2 billion and EPS of $0.48. The company will release earnings Wednesday after market close.
Shares were trading around $34.15 at the time of publication.
Related Links:
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
