eBay Inc. stock (NASDAQ: Ebay) fell more than 2% on Monday. The stock has fallen 18% over the past 12 months. The company posted lower revenue and gross merchandise volume (GMV) in the most recent quarter, while its adjusted EPS increased year-over-year. Here’s what to expect in the near future.
Earnings
In the fourth quarter of 2022, eBay generated $2.5 billion in revenue. This was down 4% year-on-year on a reported basis and down 1% on a currency neutral basis. For the first quarter of 2023, eBay expects revenue to be between $2.46 billion and $2.50 billion.
profit and margin
eBay reported fourth quarter 2022 GAAP net income of $671 million, or $1.23 per share. This compares to a net loss of $893 million, or $1.47 per share, in the same period last year. Adjusted EPS increased 2% to $1.07. GAAP operating margin decreased to 22.5% from 26.3% last year, and adjusted operating margin decreased to 29.9% from 31.6% last year.
For the first quarter of 2023, eBay expects GAAP EPS of $0.77 to $0.81 and adjusted EPS of $1.05 to $1.09. Adjusted operating margin is expected to be in the range of 29.1% to 29.7%.
total product volume
Fourth quarter 2022 GMV was $18.2 billion, down 12% on a reported basis and down 6% on a currency neutral basis. US GMV was down 9% year-over-year, while international GMV was down 4% at constant currency. GMV in the first quarter of 2023 is projected to be in the range of $18 billion to $18.3 billion, representing organic currency-neutral growth of between -5% and -4% year-over-year.
Click here to read eBay’s full Q4 2022 earnings call
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