From Nasdaq: 2024-04-29 02:25:38

eBay (NASDAQ: EBAY) is set to release its fiscal Q1 2024 results, with expectations of mixed results. While revenues are forecasted to surpass consensus estimates, earnings are expected to fall short. The company saw a 2% increase in net revenues last quarter, driven by growth in advertising product revenues and GMV. However, a decline in active buyers impacted overall performance.

Despite a stagnant stock price for eBay, it has underperformed compared to the S&P 500 over the past three years. Returns were 32% in 2021, -38% in 2022, and 5% in 2023, demonstrating lackluster performance. With uncertainties in the economic environment, including high oil prices and elevated interest rates, questions arise about eBay’s future performance.

Revenue growth for eBay is expected to continue, with revenues forecasted to reach $10.2 billion in FY2024. The company’s Q1 2024 net revenues are estimated to be $2.45 billion, 3% higher than consensus estimates. On the earnings front, eBay’s adjusted EPS is predicted to marginally miss estimates, with a forecasted RPS of $20.26 in FY2024.

Based on revenue per share estimates, eBay’s valuation is calculated at $49 per share, which is 5% lower than the current market price. The analysis uses a P/S multiple of 2.4x for fiscal 2024. Overall, eBay’s stock price estimate falls below the current market value, indicating a potential undervaluation.



Read more at Nasdaq: Up 17% YTD, What To Expect From eBay Q1 Results?