eBay (NASDAQ:EBAY) posted a solid first quarter but its second-quarter revenue outlook fell short of estimates. In the second quarter, the company has forecast adjusted earnings between $1.10 and $1.15 per share on revenues in the range of $2.49 billion to $2.54 billion. Analysts had projected earnings of $1.14 per share on revenues of $2.56 billion.
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eBay’s Q1 Results
The online marketplace generated revenues of $2.6 billion, up by 2% year-over-year on a currency-neutral basis but surpassed Street estimates of $2.53 billion. Adjusted earnings came in at $1.25 per diluted share, up by 13% year-over-year, and were above consensus estimates of $1.20 per share.
Moreover, the company’s Gross merchandise volume (GMV) in the first quarter stood at $18.6 billion, up by 1% on an as-reported basis. The e-commerce platform defines GMV as the total value of all paid user transactions on its platforms during the period, including shipping fees and taxes.
eBay’s CEO Jamie Iannone noted in an interview with Barron’s that the company experienced 5% growth in the first quarter from “focused categories,” such as luxury goods and auto parts, which comprised of 30% of the business in FY23.
eBay Declares Dividend
eBay’s Board of Directors declared a cash dividend of $0.27 per share payable on June 14 to stockholders of record as of May 31, 2024, with a dividend yield of 1.99%.
Is eBay a Good Stock to Buy?
Analysts remain cautiously optimistic about EBAY stock, with a Moderate Buy consensus rating based on eight Buys, 14 Holds, and one Sell. Year-to-date, eBay has increased by more than 15%, and the average EBAY price target of $51.78 implies an upside potential of 1.4% from current levels.
