Upcoming AWS Coverage on Alibaba Group Holding
LONDON, UK / ACCESSWIRE / April 25, 2017 / Active Wall St. announces its post-earnings coverage on eBay Inc. (NASDAQ: EBAY). The Company posted its first quarter fiscal 2017 results on April 19, 2017. The ecommerce Company surpassed top- and bottom-line expectations. Register with us now for your free membership at:
One of eBay's competitors within the Specialty Retail, Other space, Alibaba Group Holding Ltd (NYSE: BABA), is estimated to report earnings on May 04, 2017. AWS will be initiating a research report on Alibaba Group following the release of its next earnings results.
Today, AWS is promoting its earnings coverage on EBAY; touching on BABA. Get our free coverage by signing up to:
eBay delivered gross merchandise volume (GMV) for the quarter ended March 31, 2017 of $20.9 billion, increasing 2% on an as-reported basis and 5% on a foreign exchange (FX) neutral basis. The Company generated revenue of $2.22 billion for the reported quarter, up 4% on an as-reported basis and 7% on an FX-Neutral basis. eBay's revenue numbers exceeded analysts' consensus of $2.21 billion.
eBay's GAAP operating margin decreased to 24.6% for Q1 2017 compared to 28.7% in Q1 2016. The Company's non-GAAP operating margin decreased to 30.0% in the reported quarter compared to 33.4% for the same period last year
For Q1 2017, eBay delivered GAAP net income from continuing operations of $1.0 billion, or $0.94 per diluted share, driven by a non-cash $695 million income tax benefit related to the continued realignment of its legal structure, primarily impacting its foreign Classifieds platforms. The Company's non-GAAP net income from continuing operations was $538 million, or $0.49 per diluted share. eBay's earnings surpassed Wall Street's expectations of $0.48 per share.
During Q1 2017, eBay' Marketplace platforms delivered $20.0 billion of GMV and $1.8 billion of revenue. Marketplace GMV was up 2% on an as-reported 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-reported basis and 5% on an FX-neutral basis. The Company's StubHub drove GMV of $916 million, up 6%, and revenue of $210 million, up 18% on an as-reported basis and 19% on an FX-neutral basis, aided by strength in international markets with the integration of the Ticketbis acquisition. eBay's Classifieds delivered revenue of $199 million, up 7% on an as-reported basis and 10% on an FX-neutral basis with strength across its German platforms.
In Q1 2017, eBay added two million active buyers across its platforms, for a total of 169 million 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, including the launch of a billboard and radio campaign across the United States.
eBay also announced a strategic agreement with Flipkart. In exchange for an equity stake, eBay will make a $500 million cash investment and sell its eBay.in business to Flipkart. The companies will also exclusively pursue cross-border trade opportunities together.
Other Selected Financial and Operational Results
eBay generated $582 million of operating cash flow from continuing operations and $447 million of free cash flow from continuing operations during Q1 2017. The Company repurchased approximately $350 million of its common stock, or 10 million shares, in the reported quarter. eBay's total repurchase authorization remaining as of March 31, 2017, was $986 million. The Company's cash and cash equivalents and non-equity investments portfolio totaled $11.2 billion as of March 31, 2017.
For Q1 2017, eBay expects net revenue to be between $2.28 billion and $2.32 billion, 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. For FY17, the Company expects net revenue in the range of $9.3 billion and $9.5 billion, 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 band of $1.85 - $2.10.
At the closing bell, on Monday, April 24, 2017, eBay's stock slightly fell 0.40%, ending the trading session at $32.05. A total volume of 16.55 million shares were traded at the end of the day, which was higher than the 3-month average volume of 9.30 million shares. In the last three months and previous twelve months, shares of the Company have rallied 5.88% and 31.35%, respectively. Moreover, the stock surged 7.95% since the start of the year. Shares of the company have a PE ratio of 4.57 and currently have a market cap of $36.00 billion.
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SOURCE: Active Wall Street