Wednesday, April 18, 2007

EBAY's Earnings And Guidance

The following was taken from

Reports Q1 (Mar) earnings of $0.33 per share, ex items, $0.03 better than the Reuters Estimates consensus of $0.30; revenues rose 27.3% year/year to $1.77 bln vs the $1.72 bln consensus. Co issues in-line guidance for Q2, sees EPS of $0.31-0.33 vs. $0.31 consensus; sees Q2 revs of $1.75-1.80 bln vs. $1.75 bln consensus. Co raises guidance for FY07, sees EPS of $1.30-1.34 (prior guidance $1.25-1.29) vs. $1.29 consensus; sees FY07 revs of $7.20-7.45 bln (prior guidance $7.05-7.30 bln) vs. $7.28 bln consensus. Non-GAAP operating margin for 2007 is expected to be 33%.

EBAY Conference Call Summary

Will launch an updated version of Skype in Q2... revenue growth has benefitted from better inventory; not satisified with GMV growth in US and Germany... France and Italy continue to grow at strong rates... Europe continues to drive new users... Notes in Asia user growth slowed a little... co says mix shift to International has allowed co to take advantage of a lower tax structure and better exchange rates verse the dollar and raise their guidance... Co says that ASP improvements was broad based throughout the World... co has seen a decline in use of active users and they will be concentrating on this area... Expects to increase operating margins y/y; does note that the fast Skype expansion will have a negative effect on margins but believes they will be able to offset that decline, thus the guidance... Co says that they see good strength in younger users... co notes that you have to be 18 to use eBay but they are doing studies to see if their is a market for younger users... co believes the ability to get active users to improve usage will take some time... call has ended, stock is trading at $35.45 in after hours which is a new year high.

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