eBay (EBAY) Q3 earnings: what to expect

What happened

eBay will report its third-quarter earnings on Wednesday after the market closes. Last quarter, it beat analysts' revenue expectations with revenues of $3.13 billion, up 14.8% year on year, and reported 136 million active buyers, up 1.5% year on year.

Confirmed

Global impact / market context

The results will show whether eBay can keep growing revenue after last quarter's 14.8% increase. The market expects 10.5% growth this quarter, so falling short of that expectation could hurt the share price, while beating it could help.

Analyst inference

Analysts have kept their estimates steady over the last 30 days, suggesting they expect the business to stay the course. Among peers, Meta beat revenue expectations by 2% while Netflix matched estimates, giving a hint of consumer internet demand.

Analyst inference

What to watch

1. eBay will report revenue and profit guidance for the next quarter, after last quarter's revenue guidance beat expectations but its earnings-per-share guidance, which means profit per share, missed expectations. Confirmed
2. Watch whether eBay reaches the market's expected 10.5% year-on-year revenue growth, an improvement from the 9.5% increase it recorded in the same quarter last year. Proposed
3. Watch whether eBay, which rarely misses Wall Street's revenue estimates, meets expectations, since a shortfall could pressure its shares much as it did for peers that disappointed investors. Analyst inference

Evidence

• stockstory.org