Shares of eBay Inc. (NASDAQ: EBAY) had been up barely throughout mid-day hours on Monday. The inventory has gained 17% year-to-date. The e-commerce firm is slated to report its second quarter 2023 earnings outcomes on Wednesday, July 26, after market shut. Right here’s a have a look at what to anticipate from the earnings report:
Income
eBay has guided for revenues of $2.47-2.54 billion for Q2 2023, which displays an natural FX-neutral year-over-year progress of 1-4%. Analysts are estimating income of $2.51 billion, which might replicate a YoY progress of three.5%. In Q1 2023, income rose 1% on a reported foundation and three% on an FX-neutral foundation to $2.5 billion.
Earnings
eBay guided for GAAP EPS to vary between $0.65-0.70 and adjusted EPS to vary between $0.96-1.01 in Q2 2023. Analysts are projecting EPS of $0.99 for Q2, which is unchanged from the year-ago interval. In Q1, adjusted EPS rose 5% YoY to $1.11.
Factors to notice
eBay’s technique of specializing in used and refurbished items on its platform may proceed to repay. In a tricky financial setting, these items are inclined to have extra demand amongst cash-strapped clients than new items. The corporate’s efforts in bringing on extra small enterprise sellers to its Refurbished program can be prone to show helpful. In Q1, eBay noticed double-digit progress in its Refurbished gross merchandise quantity (GMV).
The corporate’s promoting enterprise additionally seems to be wholesome. In Q1, sturdy demand for Promoted Listings drove a 31% YoY progress in first-party promoting income. Complete promoting income grew 23% to $317 million.
Earlier this month, eBay acquired Certilogo, a supplier of AI-powered attire and trend items digital IDs and authentication. Certilogo makes use of digital know-how to assist manufacturers and designers handle the lifecycle of their clothes. It additionally gives entry to dependable product data and helps affirm authenticity. This acquisition is anticipated to assist eBay shield clients from counterfeits, which might be an enormous benefit.
In Q1, GMV was down 5% on a reported foundation and a couple of% on an FX-neutral foundation to $18.4 billion. This stress on GMV is anticipated to proceed within the second quarter. The corporate has guided for GMV of $17.8-18.2 billion, which represents a decline of 2-5% on an natural FX-neutral foundation.