Pegging eBay's First Earnings Under CEO Donahoe (EBAY)

After today’s close, we’ll get to see earnings out of eBay Inc. (NASDAQ: EBAY). The estimates for the online auction platform from First Call are $0.39 EPS on $2.08 billion in revenues.  Next quarter estimates are $0.40 EPS on $2.11 billion in revenues, and estimates for fiscal Dec-2008 are $1.68 EPS on $8.79 billion in revenues.

Last quarter, eBay offered guidance for fiscal 2008 non-GAAP earnings of $1.63 to $1.67 on revenues of $8.5 to $8.75 Billion, while First Call had estimates at that time of $1.66 EPS on roughly $9 Billion in revenues.  At that time, analysts had an average price target of almost $40.00.  As of now, analysts have an average price target north of $35.00.

On last look, options traders appear to be bracing for a move of up to $1.05 in either direction.  eBay is now well above its 50-day moving average of $28.61, but it is currently bumping up against its more solid 200-day moving average of $32.64.  Shares are now up almost 30% from the 52-week lows that were just put in last month.

Just recently, Merrill Lynch raised it to BUY from Neutral.

eBay’s 52-week trading range is $25.10 to $40.73, and shares are up more than 3% at $32.60 shortly after 12:00 PM EST. 

What may make this more interesting than earnings and guidance issued before is that the call will be under new CEO John Donahoe. Meg Whitman was auctioned away.

Jon C. Ogg
April 16, 2008

Jon Ogg produces the Special Situation Investing Newsletter.  He can be reached at [email protected] and he does not own securities in the companies he covers.