Ebay (EBAY) Estimates Up On Strong Listing Growth

JP Morgan analyst Imran Khan raises Ebay (EBAY) estimates to reflect “strong growth across a variety of geographies.” QTD, Khan has tracked listing growth of 22% and is modelling a 17% growth rate for the full quarter. Khan is also optimistic about PayPal growth:

We think that the company’s efforts to expand PayPal beyond the eBay site are continuing to pay off, and the higher number of merchants accepting PayPal is helping the unit grow market share.

We are slightly tweaking upwards our estimates for PayPal 2Q operating metrics: we now see a 21.3% Y/Y rise in the number of payments, up from 21.0% previously and 19% in 1Q, and a 9.1% Y/Y increase in TPV per payment, from 8.0% previously and 12.2% in 1Q.

Additionally, Khan sees revenue per listing contracting slightly as a result of a new fee structure, coupons, and promotions:

We now expect 2Q RPL of $1.89, down 7% Y/Y and down 3% Q/Q. We believe the RPL is likely to be lower due to the new fee structure, coupons, and promotions. On the flip side, we expect a positive impact from FX movements as well as increasing utilization of multiple-item listings.

Khan maintains his Overweigh. 2Q revenue and EPS estimates inch up, from $2.181 to $2.196 billion and from $0.41 to $0.42 respectively.


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