Cantor Sets Expectations On Ebay Ahead Of 4Q Earnings

Cantor analyst Youssef Squali weighed in today with some forecasts on Ebay (NASDAQ:EBAY), as the company is heading into fourth-quarter earnings results, which will be reported on January 21. The analyst rates the stock a Buy with a $60 price target. 

Squali observed, “We expect 4Q:14 results to come in line with muted Street expectations given the maturing auction business, last year’s security breach and F/X headwinds, all of which should negatively impact Marketplaces growth. Continued strength in the US$ relative to major currencies so far in 1Q:15 is likely to yield tepid 1Q:15 guidance as well, in our opinion. We see the spin-out of PayPal and potential for strategic partnerships and for improvement in Marketplaces as reasons to continue to own the stock.”

Furthermore the analyst said, “We expect $4.95B in revenues and $0.88 in EPS (pro forma) (virtually in line with consensus’ (FactSet) $4.94B/$0.89). We expect rev. growth to dip ~260bps sequentially to 9.2% Y/Y, largely reflecting F/X headwinds and continued underperformance of Marketplaces due to the security breach in late May. Mgt’s 4Q outlook is for $4.85-4.95B/$0.88-0.91. We expect F/X to result in a headwind of $35M on rev. (ex. hedging) and ~$(0.01) impact on EPS vs. guidance.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Youssef Squali has a total average return of 25.9% and a 67.7% success rate. Squali has a 15.1% average return when recommending EBAY, and is ranked #11 out of 3426 analysts.

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