Wednesday, October 15, 2008

eBay Announces 3rd Quarter 2008 Numbers

Real quickly you can get the results from eBayInk blog by clicking on the title of this post or on this link. After the conference call I will have a more in-depth posting:

Highlights are:
Third quarter revenue was $2.12 Billion (up $228 million from the same period in 2007). Net income on a GAAP basis was $492 million ($0.38 per diluted share), and non-GAAP net income was $592 million ($0.46 per diluted share). 
Here is the take from CNBC
eBay reversed last year's loss and beat analysts' expectations, but a weak outlook hammered the firm's shares in late trading.

The online auction site turned in a third-quarter profit of 46 cents a share, excluding items, on sales of $2.12 billion, against earnings of 41 cents a share on sales of $1.889 billion in last year's third quarter.

For the current quarter, eBay now expects to earn 39 cents to 41 cents a share excluding items. Analysts had foreseen a profit of 47 cents a share.

The company also sees fourth-quarter sales falling below expectations, to a range of $2.02 billion to $2.17 billion, versus the current consensus estimate of $2.44 billion.
That guidance is significantly lower than expected.


Just my 15%

15 comments:

ms.pat said...

Its quite obvious that Ebay thought up FP 30 to help pull it out of the hole for Q3 - wonder what they'll come up with in Q4. Just when will sellers realize this company is simply sucking money off them while they rearrange their business model? Walks away scratching head...

Tony P. said...

ah, mystery solved. yes? no?

conference call:

5:24: Shopping search engine, Shopping.com, nailed by search engine tweaks (read: Google is not interested in giving free traffic to its rivals), hurting marketplace revenue by "about a point".


I can imagine all of the tweaking those geeks were doing, trying to get SDC items to come up within Google searches.

Nevermind that all that tinkering was playing havoc with the .COM site items.


against last quarter:

The true telling part is how listings were UP, but GMV was DOWN. Meanwhile ebay managed to squeeze the turnips a little tighter and extract a nice UP bit of revenue.

And, it's official: Donahue says there'll be NO Christmas. Grinch bastard.

Randy Smythe said...

Wow, that was the poorest quarterly report eBay has ever given.

Well 3Q wasn't awful but guidance for Q4 is terrible.

Head for the hills everybody.

Also, eBay is quickly becoming an advertising portal.

Tony P. said...

Some online commentators are saying that ebay beat the estimate of 41-cents, with that non-GAAP EPS of 46-cents

BUT

most true analysts are looking at the GAAP figure of 38-cents per share.

It may be a matter of fiscal POV, but I say that ebay not only didn't beat the estimate, they didn't even hit the low side.

That is a FIRST.

after hours: $14.55 per share.

Anonymous said...

how the f*** does efee continue to post growth in revenue and earnings! If there are no sellers left on eBay then what the hell are buyers buying??

Randy Smythe said...

Anonymous StubHub +46%, Advertising +127% and Classifieds +59%

BMX said...

Randy,

Whats the difference between Revenue and GMV?

Randy Smythe said...

BMX,

Revenue is the dollars coming into eBay's bank account from fees =, advertising, etc. GMV is the value of the product sold in the marketplace.

Hopefully that make sense.

Anonymous said...

Hi Randy,
Whats your opinion on how much time the current team at Ebay, namely J Donahoe has before the board decides that he's running the business into the ground.

If these current execs make it into the next year it would suprise me

BMX said...

Randy,

That is what I thought.

So basically ebay revenue is UP, in the marketplaces business ONLY, and overall GMV is trending into negative territory.

Affirms my thoughts that all the free shipping BS is helping their numbers and screwing sellers over.

Why not some real discounts? Does anyone who sells in volume have a 4.9?? Doubtful.

Whirly said...

Hi Randy,

Do you consider $15 a steal? I am looking for reasons not to buy stock now, I bottled it $17 purely because of the US economic situation over the last 2 weeks.

Also, any thoughts on Paypal? will it make the break and go alone I would guess there is some investor pressure at the moment for that to happen.

Randy Smythe said...

Whirly,

At this point I would stay away from eBay as an investment. I think they are broken and the share price will suck until new management comes in.

BMX, they are running out of levers to pull.

Anonymous,

I think JD and crew have 2 more quarters at best.

Anonymous said...

With ebay stock below $14 now I think it is safe to say the destruction of the marketplace is complete. All the value of ebay is now in paypal, stubhub, etc. Greed killed the ebay star.

Anonymous said...

In a couple of months I will have my year in and become one of the 88% who are inactive users.

Can I become a "Power" Inactive User?

Randy Smythe said...

Anonymous,

Yep there is a metric they should be counting Power Inactive users.