eBay Inc. (NASDAQ:EBAY) will release its financial results for the second quarter of 2014 after the market close on Wednesday, July 16, 2014. The company will host a conference call for investors and analysts to discuss financial results for the quarter at 2 p.m. Pacific/5:00 p.m. Eastern.
Wall Street anticipates that online auctioner will earn $0.68 per share for the quarter, which is $0.05 more than last year’s profit of $0.63 per share. iStock expects eBay to hit Wall Street’s consensus number, the iEstimate is $0.68, too.
Sales, like earnings per share (EPS), are expected to pop higher, increasing a healthy 13% year-over-year (YoY). The consensus revenue estimate for Q2 is $4.38 billion versus last year’s $3.88 billion.
eBay Inc. provides online platforms, tools, and services to help individuals and merchants in online and mobile commerce and payments in the United States and internationally. Its Marketplaces segment operates ecommerce platform eBay.com; vertical shopping sites, such as StubHub, Fashion, Motors, and Half.com. The company also operates PayPal.
Wednesday’s earnings release will be the first time investors get to see the impact of a cyberattack that compromised a database containing encrypted passwords and other non-financial data. EBAY users were asked to change their passwords.
According to quantcast .com, the number of visitors to eBay.com fell – dramatically – since the end of March, dropping 63% to 41.7 million from 114 million. That can’t be good if the numbers are accurate. Fortunately, visitors recovered s touch in the last month, rising more than 50% from May’s bottom.
Alexa.com confirms quantacast as eBay traffic chart shows a sharp drop off post- cyberattack. On the plus side, the number of pages visited by users went up slightly in the last three months – 2.2%.
If the data from quantcast and Alexa translates, then it could be difficult for EBAY to meet the street’s view. In the last year, the online specialty retailer has hugged Wall Street’s consensus. Actual results topped expectation by a penny twice while matching the consensus twice. As you can see, there has been little margin for error.
In the last three years, management has delivered nine bullish surprises with three on-target results for the last 12 quarterly checkups. On average, eBay earned $0.02 more than forecasted.
EPS driven, price-sensitivity has split the last dozen announcements with shares rising and falling in the days around results six times each. When investors cheered results, the average gain was 6.38% while the typical loss was -4.55%.
Overall: eBay Inc. (NASDAQ:EBAY) history and iEstimate suggests another close the consensus result; however, recent cyberattacks could add downside risk. Investors should be cautious ahead of earnings, in our opinion.