eBay (NASDAQ: EBAY) recorded second-quarter income of $2.42 billion, which is 2.53% larger than the analyst consensus of $2.36 billion and down by 9% from Q2 2021. International change fluctuations are liable for one-third of the decline in income. eBay reported earnings per share of $0.99 or 10.88% larger than the analyst consensus of $0.89.
What had been the important thing factors from eBay’s second-quarter earnings report?
The corporate’s gross merchandise quantity (GMV) was $18.5 billion for the quarter, down 18% year-over-year (YoY). Nonetheless, final 12 months’s figures had been affected by mobility restrictions and elevated stimulus. GMV is up 5% in comparison with Q2 2019 and 1.54% in comparison with the corporate’s midpoint steering for the quarter. eBay has set full-year steering of $72.7 billion to $74.7 billion, down by 17%-15% YoY resulting from macroeconomic headwinds and overseas change fluctuations.
The corporate generated free money circulation (FCF) of $466 million for the quarter, which represented roughly 19% of the corporate’s income. FCF was down by 49% from the earlier 12 months and 15% from the primary quarter. The FCF as a proportion of income has additionally been on the decline resulting from the next value of income, working bills, and a robust greenback. The corporate’s whole money and investments had been $4.5 billion after repaying $605 million in debt throughout the quarter. This introduced eBay’s web debt to $3.2 billion.
The corporate returned $1.41 billion to buyers within the type of share repurchases and dividends throughout the quarter. That is up from $1.38 billion within the first quarter of 2022. Over the previous 12 months, eBay decreased its diluted share depend by 124 million to 561 million shares. The less shares there are, the extra beneficial the rest turns into whereas rising the proportion of dividends the shareholder is entitled to. As of June thirtieth, eBay had a further $3.4 billion in share repurchases licensed, which ought to assist ease the decline the corporate has skilled this 12 months.
What affect did eBay’s earnings have on its share value?
After the corporate launched its second-quarter earnings report, its share value elevated by 4.23% by the tip of the buying and selling day. Traders had been impressed that it beat the analyst consensus on earnings and income. Whereas these figures declined from a 12 months in the past, it was not as unhealthy as anticipated. Traders had been additionally glad as a result of a number of different retailers (on-line and bodily) reported a miss in earnings. Nonetheless, the corporate’s shares have since fallen by 1.16% as macroeconomic issues weigh on buyers.