eBay: Color on Qtr
- Wedbush maintains Neutral rating and lowers tgt to $24 from $27 on lower estimates. Firm believes eBay will continue to grow revenue mid-single digits over the next few quarters balancing a challenging competitive environment with improving ancillary businesses. Q4 revenue of $2.32 billion represented YoY FXN growth of 5% and was in line with consensus. Non- GAAP EPS of $0.50 was also in line with guidance. GMV grew 5% YoY FXN with slight sequential improvement in the US helping to offset decelerating International FXN growth.
- Needham Research notes eBay reported in-line 4Q15 results, but 2016 guidance was below expectations. Continued headwinds related to SEO, the launch of its new mobile app, and sluggish C2C business, limited marketplaces GMV and revenue growth to 4% and 1%, respectively. Firm expects eBay to continue implementing its strategic initiatives, but these headwinds and FX headwinds are likely to persist. Therefore, firm estimate flat y/y revenue in 2016 and flat EPS as improvements in operational leverage and lower share count (due to repurchases) are offset by the FX headwinds and separation related costs.
- Mizuho Securities notes eBay reported an in-line 4Q, but the guide came in below expectations. The company continues to execute on its structured data initiative, but it will take time before the changes have a real positive impact on traffic and conversion. Furthermore, firm is increasingly worried about the Macro environment, which had a negative impact on eBay's Marketplace biz a few years ago. Reiterate Neutral rating and remain on the sidelines as it does not see any near-term catalyst for the stock.
- RBC Capital notes, against low expectations, EBAY posted an in-line and lower Q4, with both Revenue and EPS in-line with Street. The company lowered guidance, largely FX related but fundamental trends were incrementally negative sending the stock materially lower after-hours. eBay also repo'd $550MM of stock. Lowers tgt to $29 from $30.
Shares of EBAY are down approx 17% in pre-market trade, hitting its lowest level since early February of 2015.