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The online auction house eBay (WKN: 916529) announced Wednesday after mid-market rather good results for the second quarter of 2018.
The subject was a sales growth below expectations and a solid profitability following the expansion of the reach. But even for the current quarter, eBay has given a cautious forecast and reduced sales prospects for the full year.
Let 's see what eBay has achieved in recent months and what investors can expect for the future.
Nothing but the numbers
| Key figures | Q2 2018 | Q2 2017 | Growth vs. Previous Year | |||
|---|---|---|---|---|---|---|
| Sales | 2.64 billion USD | 2.419 billion USD | 9.1% | |||
| Net Income GAAP | 638 million USD | 29 million USD | 2.100% [19659013] GAAP earnings per diluted share | 0.64 USD | 0.03 USD | 2.033% |
Source: Ebay.
What happened to eBay this quarter?
- eBay's non-GAAP net income increased to $ 533 million, or $ 0.53 per share, from $ 495 million or $ 0.45 per share for the same period of time. ;last year.
- Sales rose 6% on a neutral basis compared to the previous year.
- In the end, the bottom line hit the bottom of the forecast in the last quarter, which commanded a range of $ 2.64 to $ 2.68 billion. However, adjusted earnings were higher than eBay's forecast of $ 0.50 to $ 0.52 per share.
- Active buyers grew 4% to $ 175 million across all global platforms from one year to the next. In the previous quarter, there were still 171 million.
- Gross Merchandise Volume (GVA) increased 10% (7% at constant currency) to $ 23.6 billion.
- Market sales increased 9.4% (6% at constant currency) to $ 1.837 billion.
- StubHub sales increased 4% to $ 246 million, with GMV up 5% to $ 1.1 billion.
- Clbadified ad sales rose 18% (10% at constant currency) to $ 259 million.
- eBay generated $ 372 million in cash flow from operations and $ 188 million in free cash flow.
- The company bought back 26 million shares for a billion dollars during the quarter, leaving $ 5.7 billion under eBay's current redemption authority.
- eBay has announced its intention to sell its interest in Flipkart for gross proceeds of $ 1.1 billion. Then, eBay will terminate its strategic partnership with the Indian e-commerce store.
- The Company completed the previously announced acquisition of Giosis' Japanese business, including the Qoo10.jp platform, thereby increasing its presence in the country.
Management said
that Ebay's CEO, Devin Wenig, said:
In the second quarter, we continued to implement our strategy and improve the main business d & # 39; eBay. At the same time, we have pursued significant opportunities in advertising and payments. Looking ahead to the second half of 2018, we anticipate an acceleration of our core businesses and sustained earnings growth.
Looking Ahead
But from an investor's point of view, things did not go very well. For the third quarter of 2018, eBay expects sales between $ 2.64 billion and $ 2.69 billion, with organic growth of 5% to 7% in local currency. Below the line, this should translate into adjusted net income from continuing operations in the range of $ 0.54 to $ 0.56 per share. However, most investors wanted revenues of about $ 2.73 billion.
For the full year, eBay has also reduced its revenue forecast for 2018 from $ 10.75 billion to $ 10.85 billion, previously estimated at $ 11.1 billion. But eBay also slightly raised its outlook for 2018, with underlying earnings per share in the range of 2.28 to $ 2.32, previously expected between $ 2.25 and $ 2.30 per share.
At the next conference, management said the declines were mainly due to the negative impact of strengthening the US dollar, especially as nearly 60% of the activity was from eBay to international markets. In addition, eBay does not expect an improvement in the market development of StubHub in the second half.
That does not mean that this neighborhood was bad. After all, eBay has implemented its most important strategic guidelines to improve the customer experience and constantly expand its active user base.
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The Motley Fool recommends eBay shares.
This article by Steve Symington was published on 18.7.2018 on Fool.com. It has been translated so that our German readers can participate in the discussion.
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