TThe e-commerce industry has been very dynamic in recent quarters. The COVID-19 pandemic has accelerated the transition to a digitized retail sector and has shown no signs of slowing down so far. Many e-commerce companies, and in particular Ebay Inc. (EBAY) face difficult comparisons of their past earnings performance. The online market should publish its Q3 earnings results after market close on Wednesday October 27.
In its previous report for the second quarter, the company posted good results across the board, surprising earnings per share (EPS) of 2.17%. During this report, the company announced an increase in its strong share buyback program, and also announced the sale of the majority of its business in Korea.
Providing his hypothesis on future gains, Daniel Salmon of BMO Capital Markets wrote that eBay “continues to create value through spinoffs, new minority interests and a strong commitment to buybacks.” The five-star analyst was encouraged by the company’s past performance and raised its price target to $ 71 from $ 63.
However, he added that he expects the gross value of goods to decline for the next report, as well as for the following months. Salmon also lowered its EBITDA estimates, in part due to the divestiture of the Korean segment of Ebay. Despite this, he considered that the funds raised by the sale of the divestiture can be used to buy back more shares in the future.
According to data aggregated by TipRanks, Ebay is expected to bring in 0.89 earnings per share. The online retailer market reported an EPS of 0.85 last year for the same quarter.
To better understand Ebay engagement levels, TipRanks Website traffic tool can be used.
TipRanks website traffic signal, whose data is provided by SEMrush Holdings (SEMR), shows another perspective to be taken into account by the curious investor. Quarter over quarter, total visits to ebay.com fell -6.41%, while stock valuation fell -0.54%. However, if we compare this year’s year-to-date to the same period in 2020, we can observe a gain of 4.56% in the total number of visits on all devices.
While the decline in quarter-to-quarter visits is daunting for Ebay, this latest metric shows a significant increase in traffic even from the depths of pandemic lockdowns, when online usage was at its peak. EBAY’s relevance continued to strive, even as economies largely reopened.
Global user data
In addition, disaggregating data by region can provide insight into international macroeconomic trends.
The majority of visitors to ebay.com come from the United States, representing approximately 78.2% of the total number of users. After the United States, there is the United Kingdom, which saw 3.5% of total world traffic.
How do the statistics for the nation’s busiest traffic compare to last year’s statistics? Across all devices, year-to-date growth has increased 5.49%.
Wall Street weighs
For the most part, sentiment on Ebay is mixed. There is no overwhelming bullish or bearish sentiment that short-term investors could trust with confidence.
BMO Capital’s Salmon went on to describe Ebay’s current situation. He wrote: “The investor debate is centered on the increasingly competitive e-commerce environment, which also faces difficult bookings. We remain Market Perform because the catalysts for disposal seem exhausted, but the valuation is not demanding. ”
As for the rest of the financial analysts on TipRanks, Ebay has a moderate buy analyst rating consensus, based on 6 buy ratings and 7 hold ratings. Ebay’s average price target is $ 76.77, reflecting a possible -4.74% drop from Friday’s closing price of $ 80.59 per share.
Disclosure: At the time of publication, Brock Ladenheim does not have a position in any of the titles mentioned in this article.
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