eBay is set to announce its fourth quarter results on Jan 18th 2012. The company is likely to report constrained earnings on account of disappointing macroeconomic factors and foreign exchange problems. The internet trading company is also expected to suffer due to increased competition from rival companies such as Amazon. However, eBay will benefit from improved product mix on its website.
Expectations
Market analysts have pegged their quarterly earnings expectations at $0.58, while its full year earnings per share is likely to stand at $2.00. The company is expected to report its fourth quarter revenue at $3.29 billion. Analysts are expecting the annual revenue to be at $11.56 billion. The company is expected to maintain its fourth quarter gross margin ratio at 71.5 percent, while its operating expenses are expected to be reported at $2.374 billion. eBay is likely to announce its cost of net revenue at $939 million, while the corresponding figure for the entire year is likely to stand at $3.319 billion.
Third Quarter Results
eBay reported its total revenue for the third quarter of the year at $2.9 billion. Its cost of revenue for the quarter stood at $885 million. The company also reported its Non-GAAP operating expenses at $1.329 billion, while its Non-GAAP operating income stood at $751 million. The company had reported its quarterly earnings at $0.37 per share. Its total net income for the quarter stood at $490 million.
Earnings History
eBay is not showing any clear trend for its quarterly earnings. The company started its Financial Year 2011 by announcing $0.47 in earnings per share for the first quarter of the year. It announced $0.48 in earnings per share for both the second and third quarter of the year. The company is now expected to report its fourth quarter earnings at $0.58 per share.
Punch Line
eBay is working on improving its product mix and the efforts are likely to yield positive results in this quarter and coming financial year. The company is also expected to benefit from growing PayPal business. But at the very same time, it will suffer setbacks due to poor alignment of PayPal business.