eBay's Q1 Earnings Outpace Analysts' Expectations, Shares Rise 20.3%

eBay reported Q1 revenues of $2.59 billion, up 1.1% YoY, exceeding analysts' expectations by 1.6%. The company's stock is up 20.3% since reporting and currently trades at $82. eHealth reported revenues of $113.1 million, up 21.7% YoY, outperforming analysts' expectations by 13.4%. The company's stock is down 13.9% since reporting and currently trades at $4.03.

eBay Inc. (EBAY) and eHealth Inc. (EHTH) recently reported their Q1 financial results, with mixed reactions from analysts and investors. eBay reported Q1 revenues of $2.59 billion, up 1.1% year-over-year (YoY), exceeding analysts' expectations by 1.6%. The company's stock is up 20.3% since reporting and currently trades at $82.03 [1].

eHealth Inc. reported Q1 revenues of $113.1 million, up 21.7% YoY, outperforming analysts' expectations by 13.4%. However, the company's stock is down 13.9% since reporting and currently trades at $4.03 [1].

eBay Inc. (EBAY)

eBay's Q1 results were driven by a nearly 2% increase in gross merchandise volume (GMV) to $18.8 billion, with a 1.1% YoY increase in revenue to $2.59 billion. Non-GAAP earnings per share (EPS) grew by 10% to $1.38. The company returned approximately $760 million to shareholders through repurchases and cash dividends [1].

Analysts at TD Cowen have adjusted the price target for eBay, raising it from $64 to $72 while maintaining a Hold rating on the stock. The firm projects a 2.4% YoY growth in GMV for the second quarter, which surpasses the midpoint of eBay's guidance but falls slightly short of the consensus by 0.2%. This growth is influenced by favorable foreign exchange rates but is also impacted by the timing of Easter and ongoing macroeconomic conditions [1].

Based on the one-year price targets offered by 27 analysts, the average target price for eBay Inc. (EBAY) is $68.87 with a high estimate of $81.00 and a low estimate of $50.00. The average target implies a downside of 12.85% from the current price of $79.03. The average brokerage recommendation from 33 firms is currently 2.7, indicating a Hold status [1].

eHealth Inc. (EHTH)

eHealth's Q1 results were driven by a 21.7% YoY increase in revenue to $113.1 million. However, the company's stock has been negatively impacted by the news, with a 13.9% decrease in stock price since reporting [1].

The company's stock has been negatively impacted by the news, with a 13.9% decrease in stock price since reporting. Analysts have expressed concern about the company's growth prospects and the potential impact of regulatory changes on its business model [1].

References

[1] https://www.gurufocus.com/news/2993840/ebay-ebay-price-target-increased-by-analyst-with-hold-rating-ebay-stock-news