Here is what analysts are saying prior to the call:
- Tim Boyd, American Technology Research: He expects a beat-and-raise quarter. Boyd sees Q1 revenue of $2.1 billion and EPS of 40 cents versus the Street at $2.06 billion and 39 cents. He sees gross merchandise value increasing 15% year-over-year, up from 12% in Q4. He says checks find an acceleration in U.S. GMV, which is says is “key.” On the other hand, he warns that for the stock to extend its recent rally, you will need to see a beat and raise quarter; re-acceleration in GMV growth; and a sequential rise in active users.
- Aaron Kessler, Piper Jaffray: Kessler today raised his Q1 estimates to $2.16 billion and 42 cents from $2.06 billion and 40 cents. His ‘08 EPS estimate goes to $1.75 from $1.67. For ‘09, he’s now at $2, up from $1.88. He also raised his price target to $40 from $34. Kessler raised his estimate on growth in the core eBay marketplace to 17% in Q1, from 11.5%. He also raised his expectations for PayPal to $526 million from $511 million. His Skype estimate rises to $126 million from $119 million.
- Youssef Squali, Jefferies: He expects $2.11 million in revenue and 39 cents for Q1. “We expect eBay to report solid Q1 results, benefiting from robust listings growth on Marketplaces and continued strength in payments and other non-GMV businesses,” he writes.
- Merrill Lynch: Online auctioneering firm eBay was upgraded to buy from neutral on Merrill Lynch. The broker cited three reasons: estimate upside compared to a conservative 2008 outlook, new management and change mentality, and the potential for accelerating gross merchandise value.
- James Mitchell, Goldman Sachs: lifted its price target to $35 from $33 - implying growth of 17 percent over its Monday closing price of $29.84. Mitchell also raised his earnings-per-share estimates for 2008 through 2010.
It's going to be interesting.