<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Snapshot from the quarter” data-reactid=”12″>Snapshot from the quarter
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The marketplace platform posted diluted earnings per share of $0.81 in the fourth quarter. Revenue for the same period came in at $2.82 billion, down 2% on a year-over-year basis. Analysts had predicted earnings of 76 cents per share on $2.82 billion in revenue.” data-reactid=”13″>The marketplace platform posted diluted earnings per share of $0.81 in the fourth quarter. Revenue for the same period came in at $2.82 billion, down 2% on a year-over-year basis. Analysts had predicted earnings of 76 cents per share on $2.82 billion in revenue.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Gross merchandise value plunged 5% to to $23.3 billion. The company’s marketplace platforms accounted for $22 billion of total gross merchandise value. During the quarter, global active buyers rose 2% on a year-over-year basis to 183 million.” data-reactid=”20″>Gross merchandise value plunged 5% to to $23.3 billion. The company’s marketplace platforms accounted for $22 billion of total gross merchandise value. During the quarter, global active buyers rose 2% on a year-over-year basis to 183 million.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Efforts to improve profitability” data-reactid=”21″>Efforts to improve profitability
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The company is currently facing stiff competition from Amazon.com Inc (NASDAQ:AMZN) and Wal-Mart (NYSE:WMT) in the marketplace business. As a result of this, the company is emphasizing its payments and advertising businesses.” data-reactid=”22″>The company is currently facing stiff competition from Amazon.com Inc (NASDAQ:AMZN) and Wal-Mart (NYSE:WMT) in the marketplace business. As a result of this, the company is emphasizing its payments and advertising businesses.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The company is also witnessing pressure from a group of activist investors who are want it to break off from some of its underperforming business units to improve profitability. eBay decided to dispose off its ticketing business StubHub, selling it for $4.05 billion to Viagogo in Nov. 2019 as it faced continued pressure from activist investors Elliott Management Corp and Starboard Value. The transaction is expected to close in the first quarter of 2020.” data-reactid=”23″>The company is also witnessing pressure from a group of activist investors who are want it to break off from some of its underperforming business units to improve profitability. eBay decided to dispose off its ticketing business StubHub, selling it for $4.05 billion to Viagogo in Nov. 2019 as it faced continued pressure from activist investors Elliott Management Corp and Starboard Value. The transaction is expected to close in the first quarter of 2020.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="In addition, eBay is implementing several improvements in view of making its platform simpler. The company is adding features like grouped listings and personal recommendations. ” data-reactid=”24″>In addition, eBay is implementing several improvements in view of making its platform simpler. The company is adding features like grouped listings and personal recommendations.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Financial forecast” data-reactid=”25″>Financial forecast
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The company has provided 2020 guidance for revenue and earnings per share. eBay expects full-year revenue to be in the range of $10.72 billion to $10.92 billion. Earnings per share is expected to be between $2.95 and $3.05. The company’s interim CEO, Scott Schenkel, said:” data-reactid=”26″>The company has provided 2020 guidance for revenue and earnings per share. eBay expects full-year revenue to be in the range of $10.72 billion to $10.92 billion. Earnings per share is expected to be between $2.95 and $3.05. The company’s interim CEO, Scott Schenkel, said:
“As we enter 2020, our priorities are clear – we will continue to drive revenue through our growth initiatives, deliver more seller tools, improve the buyer experience by leveraging our structured data foundation, all while driving more margin expansion. We believe these efforts will position us for sustainable, profitable long-term growth and I am excited by the opportunities ahead.”
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Disclosure: I do not hold any positions in the stocks mentioned.” data-reactid=”30″>Disclosure: I do not hold any positions in the stocks mentioned.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Read more here:” data-reactid=”31″>Read more here:
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="This article first appeared on GuruFocus.
” data-reactid=”38″>This article first appeared on GuruFocus.
Add Comment