EBAY Q1 Earnings Surpass Estimates, Revenues Increase Y/Y

eBay Inc. EBAY reported first-quarter 2025 non-GAAP earnings of $1.38 per share, which beat the Zacks Consensus Estimate by 2.99%. The bottom line increased 10% year over year.See the Zacks Earnings Calendar to stay ahead of market-making news.Net revenues of $2.58 billion beat the Zacks Consensus Estimate by 1.49%. The figure increased 1% from the year-ago quarter on a reported basis and 2% on an FX-neutral basis.eBay’s first-party advertising products generated revenues of $418 million, up 13% on an as-reported basis and 14% on an FX-neutral basis.Total advertising offerings yielded $442 million in revenues, representing 2.4% of gross merchandise volume (GMV).EBAY has gained 10% on a year-to-date basis, outperforming the Internet - Commerce industry’s decline of 6.4%.EBAY’s active buyer base, which was pinned at 134 million at the end of the first quarter, increased 1% year over year, missing the consensus mark by 0.10%.eBay Inc. Price, Consensus and EPS Surprise eBay Inc. price-consensus-eps-surprise-chart | eBay Inc. QuoteGMV Details for EBAYEBAY’s total GMV of $18.8 billion in the reported quarter exhibited year-over-year growth of 1% on a reported and 2% on an FX-neutral basis. The reported GMV surpassed the Zacks Consensus Estimate of $18.5 billion.The total GMV is categorized into two parts. U.S. GMV totaled $9.06 billion, accounting for 48.3% of the total GMV. The figure rose 1% year over year. International GMV was $9.68 billion, accounting for 51.7% of the total GMV. The figure implies no year-over-year change.EBAY’s Operating DetailsOperating expenses of $1.24 billion grew 1.71% year over year. As a percentage of net revenues, the figure contracted 30 basis points (bps) from the year-ago quarter to 48.2%.The non-GAAP operating margin was 29.8% in the first quarter, contracting 50 bps year over year.EBAY’s Balance Sheet & Cash FlowAs of March 31, 2025, cash equivalents and short-term investments were $4.79 billion, down from $5.89 billion as of Dec. 31, 2024.Long-term debt was $5.75 billion at the end of the first quarter of 2025, which remained unchanged from the figure at the end of the fourth quarter of 2024.EBAY generated $787 million in cash from operating activities in the first quarter, up from $677 million in the previous quarter.The company’s free cash flow was $644 million in the reported quarter.eBay repurchased $625 million worth of shares and paid out dividends of $134 million in the reported quarter. The company had $2.7 billion remaining under its buyback authorization as of March 31, 2025.GuidanceFor second-quarter 2025, eBay expects revenues in the range of $2.59-$2.66 billion. On an FX-neutral basis, revenue growth is anticipated to be (1)-2%. The Zacks Consensus Estimate for revenues is pegged at $2.59 billion.The non-GAAP operating margin for the second quarter of 2025 is expected to be between 27% and 27.8%.GMV for the second quarter is likely to be in the range of $18.6-$19.1 billion.Non-GAAP earnings per share are anticipated between $1.24 and $1.31. The Zacks Consensus Estimate for the same is pegged at $1.26.Zacks Rank and Stocks to ConsiderCurrently, EBAY carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader sector are Carvana CVNA, Alibaba BABA and Canada Goose GOOS, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Shares of Carvana have gained 20.1% year to date. CVNA is set to report first-quarter 2025 results on May 7.Shares of BABA have risen 40.9% year to date. It is expected to report first-quarter 2025 results soon.Shares of GOOS have lost 16.7% year to date. It is expected to report fourth-quarter fiscal 2025 results soon.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report eBay Inc. (EBAY): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Canada Goose Holdings Inc. (GOOS): Free Stock Analysis Report Carvana Co. (CVNA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks