Shares of eBay Inc. (NASDAQ: EBAY) have been down 1% on Friday. The inventory has gained 16% year-to-date. The firm is scheduled to report its fourth quarter 2022 earnings outcomes on Wednesday, February 22. Here’s a take a look at what to anticipate from the earnings report:
Revenue
eBay has guided for income of $2.42-2.50 billion for the fourth quarter of 2022. Analysts are projecting income of $2.46 billion for the corporate. This compares to $2.6 billion reported within the fourth quarter of 2021. In the third quarter of 2022, eBay’s income declined 5% year-over-year to $2.4 billion.
Earnings
eBay expects its GAAP EPS to return between $0.76-0.82 and its adjusted EPS to return between $1.03-1.09. Analysts are projecting EPS of $1.06. In This fall 2021, the corporate reported adjusted EPS of $1.05. In Q3 2022, adjusted EPS rose 11% YoY to $1.00.
Points to notice
eBay has been working in a difficult atmosphere the place inflation has continued to strain client spending resulting in a slowdown in demand for discretionary items. In Q3 2022, the corporate’s gross merchandise quantity (GMV) fell 11% YoY to $17.7 billion.
However, these headwinds have sparked a requirement for pre-owned items. Pre-owned, refurbished and classic items present worth for patrons and additional revenue to sellers which make them a pretty choice in an inflationary atmosphere.
eBay’s give attention to non-new in-season items have allowed it to remain resilient on this troublesome atmosphere. Pre-owned and refurbished items alone make up over a 3rd of its GMV and so they have been rising considerably quicker than model new items in recent times. This development is prone to have continued by the fourth quarter amid the difficult macro atmosphere.
eBay doesn’t anticipate macro headwinds to let up simply but and it has predicted that the challenges are prone to proceed this yr as effectively. The power disaster in Europe together with strikes and workforce disruptions within the UK might even have impacted its enterprise within the fourth quarter. eBay has guided for $17.5-18.1 billion in GMV for This fall.
Click right here to learn the complete transcript of eBay’s Q3 2022 earnings convention name
