eBay (NASDAQ:EBAY) is a global e-commerce leader, facilitating consumer-to-consumer and business-to-consumer sales through its platform. As a major player in the online marketplace, eBay competes with giants like Amazon and Alibaba.
The company is set to release its quarterly earnings on February 26, 2025, with analysts estimating an earnings per share (EPS) of $1.20 and projected revenue of $2.58 billion.
eBay's stock has shown remarkable growth, climbing over 102% from its 2022 low, boosting its market capitalization to over $33 billion. This surge reflects investor confidence, especially as the company prepares to announce its fourth-quarter 2024 earnings.
The anticipated revenue range of $2.53 billion to $2.59 billion aligns with the Zacks Consensus Estimate of $2.58 billion, suggesting a 0.64% increase from the previous year. The company's earnings per share for the quarter are expected to be $1.20, marking a 12.2% increase from the previous year. This growth is supported by eBay's strategic focus on AI-powered tools and increased advertising revenue, despite seasonal pressures. Notably, eBay has consistently surpassed the Zacks Consensus Estimate in the last four quarters, with an average surprise of 3.33%.
eBay's financial metrics provide further insight into its market valuation. With a price-to-earnings (P/E) ratio of approximately 17, the market values eBay's earnings favorably. The price-to-sales ratio of about 3.29 and enterprise value to sales ratio of 3.90 reflect the market's valuation of its revenue and sales, including debt. The company's debt-to-equity ratio of 1.45 indicates a balanced approach to financing its assets. The company's current ratio of approximately 1.25 suggests a solid ability to cover short-term liabilities with short-term assets. As eBay approaches its earnings release, investors are keenly observing whether the stock will maintain its upward momentum or face a potential decline, especially given the recent 1.2% downward adjustment in the consensus EPS estimate.
