eBay Inc. connects buyers and sellers globally on a daily basis through eBay, an online marketplace located at www.ebay.com, and PayPal, which enables individuals and businesses to send and receive online payments through www.paypal.com.
eBay Q3 results expected to be “strong” on PayPal revenue
Online auction site eBay (NASDAQ:EBAY) will post its third quarter results after the bell Wednesday, with most analysts expecting a strong quarter related to revenues from the company’s PayPal unit.
In its second quarter, eBay reported an increase in profits and revenue, saying that increasing use of mobile devices and smartphones to shop helped its online trading platform more than double its second quarter net income.
The California-based company generates most of its cash by charging merchants a fee to list items posted for sale and from PayPal transaction fees.
The firm said then that it expected both its eBay and PayPal mobile offerings to each do more than $10 billion worth of transactions this year.
In July, eBay forecasted third-quarter revenue to be in the range of $3.3 to $3.4 billion.
Analysts polled by Thomson Reuters are expecting earnings per share of 54 cents on revenues of $3.41 billion.
Earlier in the year, the company launched a service that lets people use their PayPal accounts to pay for merchandise at Home Depot (NYSE:HD) stores, a program it said will likely expand to other large retailers.
In March, eBay also unveiled a mobile payments service for merchants who don't already have full-fledged payment systems in place.
Called PayPal Here, the service allows customers to pay using credit cards, PayPal accounts or personal cheques using merchants' mobile phones.
According to Zacks Investment Research Consensus Estimate, aided by growth in its PayPal business and mobile commerce, “we expect eBay to report a decent third quarter”.
Zacks added that recently, eBay inked a deal with Discover Financial Service, which will extend PayPal's services to 7 million merchants next year.
The research firm further noted that it is “concerned” about the increasing competition from major online retailers, such as Amazon.com (NASDAQ:AMZN), and Google Inc. (NASDAQ:GOOG) – which has reportedly been sizing up the online payment space.
eBay is one of the world's largest e-commerce companies. It connects buyers and sellers globally on a daily basis through www.ebay.com, and PayPal, which enables individuals and businesses to send and receive online payments through www.paypal.com.
Shares of eBay shed 0.27 per cent as at about 3:20 p.m. EDT, trading at $48.11.