eBay beats by $0.01, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; reaffirms FY14 adjusted EPS guidance, lowers top end of FY14 rev guidance
- Reports Q2 (Jun) earnings of $0.69 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.68; revenues rose 12.6% year/year to $4.37 bln vs the $4.38 bln consensus.
>>> Payments
- PayPal net total payment volume (TPV) grew 29% to $55.05 bln (vs $53.09 bln Briefing consensus) with Merchant Services volume up 35% and on-eBay volume up 13%. Revenue grew to $1.9 billion.
- PayPal gained 4.0 million new active registered accounts to end the quarter at 152 million (vs 153.8 mln Briefing consensus), up 15%. Global on-eBay penetration increased to 79.8%.
>>> Marketplaces
- eBay Marketplaces gross merchandise volume (GMV) grew 12% to 20.49 bln (vs $20.26 bln Briefing consensus), with the U.S. up 10% and International up 14%. Revenue grew to $2.2 billion.
- Marketplaces gained 3.8 million new buyers to end the quarter with 149 million active buyers, up 14%.
>>> Enterprise
- eBay Enterprise gross merchandise sales (GMS) grew 15% to $940 mln. Revenue grew to $267 million.
- Non-GAAP operating margin decreased to 24.4% in the second quarter (vs 24.4% Briefing consensus), compared to 26.3% for the same period last year.
- The company repurchased 32.4 million shares of its common stock for approximately $1.7 billion in the second quarter of 2014. As of June 30, 2014, the company's remaining share repurchase authorization was approximately $2.2 billion.
Co issues downside guidance for Q3, sees EPS of $0.65-0.67, excluding non-recurring items, vs. $0.71 Capital IQ Consensus Estimate; sees Q3 revs of $4.3-4.4 bln vs. $4.42 bln Capital IQ Consensus Estimate.
Co issues in-line guidance for FY14, sees EPS of $2.95-3.00, excluding non-recurring items, vs. $2.98 Capital IQ Consensus Estimate; sees FY14 revs of $18.0-18.3 bln (narrowed from $18.0-18.5 bln) vs. $18.25 bln Capital IQ Consensus Estimate.