Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, October 17, 2014

Article Excerpt

EBAY INC., $47.95, Nasdaq symbol EBAY, reported better-than-expected third quarter earnings, but its revenue missed the consensus estimate. It also lowered its earnings and revenue outlook for the current quarter. That caused the stock to fall 8% this week. In the three months ended September 30, 2014, eBay earned $848 million, up 1.3% from $837 million a year earlier. Per-share earnings rose 6.3%, to $0.68 from $0.64, on fewer shares outstanding. That beat the consensus estimate of $0.67. Revenue rose 11.8%, to $4.35 billion from $3.9 billion, but that missed consensus estimate of $4.37 billion. The company’s auction websites, which supply 50% of its revenue, saw their sales rise 6.4%. They now have 152.3 million active users, up 12.9% from a year earlier. As well, more merchants and consumers are paying for goods through PayPal (45% of revenue), which now has 156.9 million users, up 14.2%. That increased PayPal’s sales by 20.4%. The remaining 5% of eBay’s revenue comes from its Enterprise division, which helps…