Stocks Alert – eBay Inc (NASDAQ:EBAY)

eBay Inc (NASDAQ:EBAY) began its trading session at $34.20 on Wednesday. During the most recent trading session the minimum price at which share price traded, recorded at $33.78 and hit to max level of $34.34. The company fall -0.49 points or -0.17%. The company finished it trading session at $33.85. It traded total volume of 15.16 shares higher than the average volume of 7.60 shares.

eBay Inc. (EBAY), a global commerce leader, delivered gross merchandise volume (GMV) for the quarter ended March 31, 2017 of $20.90B, increasing 2% on an as-stated basis and 5% on a foreign exchange (FX) neutral basis. Revenue for the quarter was $2.20B, up 4% on an as-stated basis and 7% on an FX-Neutral basis.

During the quarter, eBay delivered GAAP net income from continuing operations of $1.0B, or $0.94 per diluted share, driven by non-cash $695.0M income tax benefit related to the continued realignment of its legal structure, mainly impacting its foreign Classifieds platforms. Non-GAAP net income from continuing operations was $538.0M, or $0.49 per diluted share. During the quarter, the company generated $582.0M of operating cash flow and $447 million of free cash flow from continuing operations. The company also repurchased $350 million of its common stock in the quarter.

“The first quarter was a strong start to the year with accelerating growth in active buyers, revenue and our core U.S. business,” said Devin Wenig, President and CEO of eBay Inc. “We are on the right path as we continue to evolve our shopping platform for consumers, leverage our technology advantages and market a sharpened eBay brand globally.”

Underlying total eBay Inc. performance, the Marketplace platforms delivered $20.0B of GMV and $1.80B of revenue. Marketplace GMV was up 2% on an as-stated basis and 5% on an FX-Neutral basis, driven by growth of active buyers, continued expansion of new user experiences and brand advertising, which led to revenue growth of 2% on an as-stated basis and 5% on an FX-Neutral basis. StubHub drove GMV of $916.0M, up 6%, and revenue of $210.0M, up 18% on an as-stated basis and 19% on an FX-Neutral basis, aided by strength in international markets with the integration of the Ticketbis acquisition. Classifieds had another quarter of strong growth delivering revenue of $199.0M, up 7% on an as-stated basis and 10% on an FX-Neutral basis with strength across its German platforms.

In the first quarter, eBay added two million active buyers across its platforms, for a total of 169.0M global active buyers.  Marketplace launched several new consumer experiences built on the foundation of its structured data efforts, coupled with continued investment in brand advertising, counting the launch of a billboard and radio campaign across the United States. The company also began the roll out of a new, personalized homepage and declared new services that will be available later this year, counting a Guaranteed Delivery program on millions of eligible items that arrive in three days or less, and an authentication program to boost consumer confidence when purchasing high-end merchandise. During Q1, StubHub became the official ticket resale marketplace for the Los Angeles Angels and Toronto Blue Jays, offering pricing guidance for sellers and panoramic 360-degree virtual view-from-seats for buyers. Classifieds continued to enhance user experiences across its platforms, counting launching a personalized homepage feed on Marktplaats.nl, in addition to expanding its inventory integration with the eBay Marketplace platform across multiple regions.

eBay recently declared a planned agreement with Flipkart. In exchange for an equity stake, eBay will make a $500.0M cash investment in and sell its eBay.in business to Flipkart. The companies will also exclusively pursue cross-border trade opportunities together.

First Quarter and Full Year 2017 Financial Highlights (presented in millions, except per share data and percentages):

Other Selected Financial and Operational Results:

Operating margin — GAAP operating margin reduced to 24.60% for the first quarter of 2017, contrast to 28.70% for the same period last year. Non-GAAP operating margin reduced to 30.0% in the first quarter of 2017, contrast to 33.40% for the same period last year.

Taxes — The GAAP effective tax rate for continuing operations for the first quarter of 2017 was (85.50)%, driven by a $695.0M income tax benefit related to a legal structure realignment, mainly impacting its foreign Classifieds platforms, contrast to 18.40% for the first quarter of 2016. The non-GAAP effective tax rate for continuing operations for the first quarter of 2017 was 18.70%, contrast to 20.40% for the first quarter of 2016.

Cash flow — The Company generated $582.0M of operating cash flow from continuing operations and $447.0M of free cash flow from continuing operations during the first quarter of 2017.

Stock repurchase program — The Company repurchased about $350.0M of its common stock, or 10 million shares, in the first quarter of 2017. The company’s total repurchase authorization remaining as of March 31, 2017 was $986.0M.

Cash and cash equivalents and non-equity investments — The Company’s cash and cash equivalents and non-equity investments portfolio totaled $11.20B as of March 31, 2017.

Business Outlook:

Second quarter 2017 — The Company anticipates net revenue between $2.28B and $2.32B, representing FX-Neutral growth of 5% – 7%, with non-GAAP earnings per diluted share from continuing operations in the range of $0.43 – $0.45 and GAAP earnings per diluted share from continuing operations in the range of $0.20 – $0.40.

Full year 2017 — The Company anticipates net revenue between $9.30B and $9.50B, representing FX-Neutral growth of 6% – 8%, with non-GAAP earnings per diluted share from continuing operations in the range of $1.98 – $2.03 and GAAP earnings per diluted share from continuing operations in the range of $1.85 – $2.10.

EBAY has the market capitalization of $36.09B and its EPS growth ratio for the past five years was 21.00%. The return on assets ratio of the Company was 34.60% while its return on investment ratio was 30.60%. Price to sales ratio was 4.07 while 87.10% of stock was owned by Institutional investors. The Company earned $7.29 Billion in prior twelve months.

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