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EBay Reports 2Q Results Wednesday -- Earnings Preview

Dow Jones Newswires ·  Aug 11, 2021 11:12
  

By Allison Prang

  

EBay Inc. is reporting second-quarter results Wednesday. Here's what you need to know.

PROFIT: According to FactSet, analysts are expecting 97 cents a share in adjusted earnings.

The company, when it reported its first-quarter results, said it was expecting adjusted earnings to be between 91 cents a share and 96 cents a share for the second quarter. It was expecting GAAP earnings to be between 67 cents a share and 72 cents a share.

REVENUE: Analysts are expecting $2.63 billion.

The company had said it was expecting revenue to be between $2.98 billion and $3.03 billion. It was guiding for revenue on an organic foreign-exchange neutral basis to rise between 8% and 10% year over year.

BOOSTED BUYBACK PLAN: The company, when it announced in late June that it finished transferring its classifieds business to Adevinta, said it was raising its expected share buyback plan to $5 billion. It had been $2 billion before.

KOREA BUSINESSES: The company also in late June said it was selling an approximately 80% stake in its Korea businesses to EMart. The deal was expected to give eBay about $3 billion in gross cash proceeds. Starting in the second quarter, the Korea businesses will be considered discontinued operations in its financial statements, the company said.

NEW CFO: EBay also named a new finance chief who started at the company June 21. Steve Priest used to be the CFO at JetBlue.

FIRST-QUARTER'S RESULTS: Net revenue rose 42% to $3.02 billion and net income fell to $641 million from $3.41 billion a year earlier. The company's earnings were 92 cents a share, down from $4.51 a share a year earlier.

  

Write to Allison Prang at allison.prang@wsj.com

  
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