EBay Inc (EBAY) Receives "Market Perform" Rating from JMP Securities

eBay Inc (NDAQ:EBAY)'s stock had its "sector weight" rating restated by equities researchers at Pacific Crest in a research report issued to clients and investors on Friday, StockTargetPrices.com reports. "We just think this is a way to stick our competitive advantage right out there and have no questions about why people shop on eBay and why they should". 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.

Excluding the impact of intangibles amortization and other items on a tax-adjusted basis, pro-forma net income came in at $467 million compared with $481 million in the year-ago period.

It is important to note that eBay's growth lags far behind Amazon as well as the industry average, and therefore the company is consistently losing market share in the USA and globally every quarter.

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, including the launch of a billboard and radio campaign across the United States. Classifieds launched a personalized homepage feed on Marktplaats.nl and continued integrating inventory with the Marketplace platform across multiple regions. 3,326,016 shares of the company's stock traded hands. eBay has a 12-month low of $22.30 and a 12-month high of $34.15.

eBay recently declared a planned agreement with Flipkart. However, this is nearly similar to the growth reported in the last quarter.

Operating margin - GAAP operating margin reduced to 24.60% for the first quarter of 2017, contrast to 28.70% for the same period previous year.

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. The company's total repurchase authorization remaining as of March 31, 2017 was $986.0M.

eBay's balance sheet is highly leveraged, with total debt of $9 billion eclipsing cash and short-term investments balance of $6.8 billion.

EBay shares fell by nearly 4 percent, to close at $32.53 after the company said late Wednesday that for its second quarter, it expects to earn between 43 cents and 45 cents a share, excluding one-time items, on revenue in a range of $2.28 billion to $2.32 billion.

E-commerce platform eBay reported Q1 revenue was $2.2bn, up 4% on an as-reported basis.

On a conference call with analysts late Wednesday, CEO Devin Wenig touted eBay's recent changes, including a more discovery-based home page, updates to its mobile app, a new authentication program to help protect buyers from purchases of fakes and its amped-up delivery program. M&T Bank Corp now owns 8,824,578 shares of the e-commerce company's stock valued at $290,330,000 after buying an additional 7,006,789 shares during the period.

  • Tracy Ferguson