[ACCESSWIRE]
Upcoming AWS Coverage on Sotheby's
LONDON, UK / ACCESSWIRE / February 2, 2017 / Active Wall St. announces its post-earnings coverage on eBay Inc. (NASDAQ: EBAY). The Company posted its fourth quarter fiscal 2016 results on January 25, 2017. The ecommerce Company topped earnings expectations, while sales were in-line with market estimates. Register with us now for your free membership at:
http://www.activewallst.com/register/
One of eBay's competitors within the Specialty Retail, Other space, Sotheby's (NYSE: BID), is estimated to report earnings on February 24, 2017. AWS will be initiating a research report on Sotheby's following the release of its next earnings results.
Today, AWS is promoting its earnings coverage on EBAY; touching on BID. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=EBAY
http://www.activewallst.com/registration-3/?symbol=BID
Earnings Reviewed
For the quarter ended December 31, 2016, eBay delivered gross merchandise volume (GMV) of $22.3 billion, increasing 5% on a foreign exchange (FX) neutral basis and 2% on an as-reported basis. Revenue for the quarter was $2.4 billion, up 6% on an FX-neutral basis and 3% on an as-reported basis. The Company's revenue numbers were in-line with analysts' estimates of $2.40 billion.
eBay's GAAP operating margin decreased to 26.6% for Q4 2016 compared to 28.5% for the same period last year. The Company's non-GAAP operating margin decreased to 31.9% in Q4 2016 compared to 34.4% for the same period last year.
During Q4 2016, eBay delivered GAAP net income from continuing operations of $5.9 billion, or $5.31 per diluted share, driven by a non-cash $4.6 billion income tax benefit related to a legal structure realignment, primarily impacting its international entities, as well as a $0.8 billion gain from the sale of its equity holdings of MercadoLibre, Inc. Non-GAAP net income from continuing operations was $601 million, or $0.54 per diluted share, up 8% on a y-o-y basis and topping market expectations for earnings of $0.53 per share.
Marketplace Performance
In Q4 2016, eBay added two million active buyers across its platforms, for a total of 167 million global active buyers. eBay's Marketplace platforms delivered $21.1 billion of GMV and $1.9 billion of revenue. Marketplace revenue was up 4% on an FX-Neutral basis and flat on an as-reported basis, driven by a strong holiday season which led to accelerating GMV growth of 5% on an FX-Neutral basis and 2% on an as-reported basis. Marketplace crossed $10 billion of volume for the first time ever.
eBay's StubHub had a record quarter with GMV of $1.2 billion, up 5%, and revenue of $279 million, up 20%, with strength in its baseball and theatre genres.
The Classifieds platforms delivered another quarter of double digit growth with revenue of $201 million, up 13% on an FX-Neutral basis and 10% on an as-reported basis with strong performance in Germany. The Company stated that Classifieds, which has over 250 million monthly unique visitors, saw strong momentum in their Automotive and Real Estate verticals, while expanding its inventory integration with the eBay Marketplace platform to Gumtree in the United Kingdom and eBay Kleinanzeigen in Germany.
For FY16, eBay's commerce platforms reported total GMV of $84 billion, up 5% on an FX-Neutral basis and 3% on an as-reported basis. Revenue was $9.0 billion, growing 7% on an FX-Neutral basis and 5% on an as-reported basis.
Cash Flow & Balance Sheet
During Q4 2016, eBay generated $620 million of operating cash flow and $484 million of free cash flow from continuing operations, inclusive of a $272 million cash tax payment related to the sale of its equity holdings of MercadoLibre, Inc. The Company repurchased approximately $1.0 billion of its common stock, or 34.6 million shares, in Q4 2016. The Company's total repurchase authorization remaining as of December 31, 2016, was $1.3 billion. The Company delivered strong operating and free cash flow on a continuing operations basis, generating $2.8 billion and $2.2 billion, respectively, during FY16. The Company's cash and cash equivalents and non-equity investments portfolio totaled $11.0 billion as of December 31, 2016.
Business Outlook
For Q1 2017, eBay expects net revenue to be in the range of $2.17 billion and $2.21 billion, representing FX-Neutral growth of 4% to 6%, with non-GAAP earnings per diluted share from continuing operations to be in the range of $0.46 to $0.48 and GAAP earnings per diluted share from continuing operations to be in the band of $0.25 - $0.40.
For FY17, the Company expects net revenue between $9.3 billion and $9.5 billion, representing FX-Neutral growth of 6% - 8%, with non-GAAP earnings per diluted share from continuing operations to be in the range of $1.98 - $2.03 and GAAP earnings per diluted share from continuing operations to be in the range of $1.20 - $1.40.
Stock Performance
At the closing bell, on Wednesday, February 01, 2017, eBay's stock climbed 1.10%, ending the trading session at $32.18. A total volume of 9.70 million shares were traded at the end of the day. In the last month and previous twelve months, shares of the Company have advanced 8.39% and 38.17%, respectively. Moreover, the stock gained 8.39% since the start of the year. Shares of the company have a PE ratio of 4.97.
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SOURCE: Active Wall Street
