EBAY Q3 Earnings and Revenues Beat Estimates, Increase Y/Y

eBay Inc. EBAY reported third-quarter 2024 non-GAAP earnings of $1.19 per share, which beat the Zacks Consensus Estimate by 0.85%. The bottom line increased 16% year over year.Net revenues of $2.57 billion surpassed the Zacks Consensus Estimate by 1.09%. The figure increased 3% from the year-ago quarter on a reported basis and on an FX-neutral basis.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Strengthening momentum across Focus Categories of EBAY and geo-specific investments was a tailwind.eBay’s first-party advertising products generated revenues of $396 million, up 14% on an FX-neutral basis from the prior-year quarter.Total advertising offerings yielded $408 million in revenues, representing 2.2% of gross merchandise volume (GMV).EBAY has gained 31.4% on a year-to-date basis, outperforming the industry’s increase of 25.1%.eBay Inc. Price, Consensus and EPS Surprise eBay Inc. price-consensus-eps-surprise-chart | eBay Inc. QuoteThe weakening momentum among active buyers was concerning. EBAY’s active buyer base, which stood at 133 million at the end of the second quarter, increased 1% year over year, beating the consensus mark by 0.48%.GMV Details for EBAYEBAY’s total GMV of $18.3 billion in the reported quarter exhibited year-over-year growth of 2% on a reported and 1% on an FX-neutral basis.The reported GMV surpassed the Zacks Consensus Estimate of $18.1 billion.The total GMV is categorized into two parts. U.S. GMV totaled $8.7 billion, accounting for 47.7% of the total GMV. The figure increased 1% year over year. International GMV was $9.56 billion, accounting for 52.2% of the total GMV. The figure grew 2% year over year.EBAY’s Operating DetailsIn the third quarter, eBay’s gross margin was 71.78%, which contracted 2 basis points (bps) year over year.Operating expenses of $1.25 billion fell 6.4%% year over year. As a percentage of net revenues, the figure contracted 492 bps from the year-ago quarter to 48.68%.The non-GAAP operating margin was 27.2% in the second quarter, expanding 80 bps year over year.EBAY’s Balance Sheet & Cash FlowAs of Sept. 30, 2024, cash equivalents and short-term investments were $4.89 billion, down from $5.1 billion as of June 30, 2024.Long-term debt was $6.17 billion at the end of the third quarter, the same as the figure reported at the end of the second quarter.EBAY generated $755 million in cash from operating activities in the third quarter, up from $367 million in the previous quarter.The company’s free cash flow was $646 million in the reported quarter.eBay repurchased $750 million worth of shares and paid out dividends of $131 million in the reported quarter. The company had $1.2 billion remaining under its buyback authorization as of Sept. 30, 2024.GuidanceFor fourth-quarter 2024, eBay expects revenues of $2.53-$2.59 billion. On an FX-neutral basis, revenue growth is anticipated to be (1)-1%. The Zacks Consensus Estimate for revenues is pegged at $2.65 billion.The non-GAAP operating margin for the fourth quarter of 2024 is expected between 26.5% and 27%.GMV for the fourth quarter is likely to be $18.9-$19.3 billion.Non-GAAP earnings per share are anticipated between $1.17 and $1.22. The Zacks Consensus Estimate for the same is pegged at $1.23.Zacks Rank & Stocks to ConsiderCurrently, EBAY sports a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader retail-wholesale sector are CAVA Group, Inc. CAVA, PetMed Express PETS and Target TGT.CAVA has gained 210.6% in the year-to-date period. CAVA is slated to report its earnings on Nov. 12. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.PETS shares have declined 46.7% in the year-to-date period. PETS is slated to report its earnings on Nov. 6. It currently sports a Zacks Rank #1.TGT has gained 4.3% in the year-to-date period. TGT is slated to report earnings on Nov. 20. It currently carries a Zacks Rank #2.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Target Corporation (TGT): Free Stock Analysis Report PetMed Express, Inc. (PETS): Free Stock Analysis Report eBay Inc. (EBAY): Free Stock Analysis Report CAVA Group, Inc. (CAVA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks