Cantor Fitzgerald expects eBay Inc. to report in-line first-quarter results, while reiterating a Buy rating on the stock.
On Monday in a research note, Cantor Fitzgerald restates its rating of Buy on the stock of eBay with a price target of $60. The sell side company supposes the company to post its first quarter financial results as per the Street’s estimation. The e-commerce giant is all set to report its 1QFY15 earnings on Wednesday APRIL 22nd after market close.
Youssef Squali an analyst at Cantor Fitzgerald mentioned we expect 1Q:15 results to come in line with muted Street expectations given the maturing auction business.” He thinks that the exchange rate volatility will put substantial pressure on the quarter earnings, and the currency impact is likely to continue towards the next quarter as well.
Cantor Fitzgerald expects the company to post around $4.39 billion of revenue somewhat less than the $4.43 consensus estimate in the first quarter. The research firm believes company’s earnings per share to be in line with consensus estimate of 70 cents. The sell-side firm said, “We expect revenue growth to dip ~560 bps Q/Q to 3% Y/Y, largely reflecting F/X headwinds and continued underperformance of Marketplaces.”
Mr. Squali decreased his EPS estimate for fiscal year 2015 to $3.09 from $3.26 less than consensus forecast of $3.10, mainly due to currency headwinds. He believes that eBay will report $3.41 EPS in FY2016 more than consensus projection of $3.39.
Furthermore, Cantor is optimistic that the spinoff of its payments unit PayPal will unlock great value for the e commerce company. The firm supposes eBay to release robust 2nd quarter guidance, and update the whole year future guidance including the spinoff of PayPal. EBay is all set to finish the spinoff later this year.
The management of EBay Inc. expects 1QFY15 revenue to be in the range of $4.35 to $4.45 billion down by 10.6% from previous quarter slightly less than $4.61 billion of Zacks estimate.
The management of EBay Inc. expects 1QFY15 revenue to be in the range of $4.35 to $4.45 billion down by 10.6% from previous quarter slightly less than $4.61 billion of Zacks estimate.
As per the analysts polled by Bloomberg, 23 assigned a rating of Buy with 21 hold ratings, however only four have rated the stock of eBay as Sell. The twelve month consensus price target on the company stock is $54.64 which reflects 6.9% of upward potential compared to current stock price.
EBay stock is up by 0.50% and trading at $56.07. The e-commerce has market capitalization of $67.65 billion.
No comments:
Post a Comment