Tuesday, June 26, 2012

eBay: Estimates Shrinking

The Street continues to bring down EPS estimates for eBay (EBAY), partly in response to the weakening Euro.

  • Deutsche Bank analyst Jeetil Patel repeated his Sell rating on the stock, trimming his target to $16, from $18. “We remain sellers of shares of eBay, as a combination of U.S. dollar strength, weak U.S. sales activity and discontinuation of the Microsoft Bing Cash Back program, which drove extra traffic to the site, “will likely result in lowered earnings guidance for 2010,” he writes. For 2010, Patel cuts his EPS forecast to $1.47, from $1.54.
  • Credit Suisse analyst Spencer Wang repeats his Outperform rating on the shares today, but trimmed his Q2 revenue forecast by 2.7%, to $2.15 billion, and cut his EPS forecast for the quarter to 37 cents, from 39 cents, to adjust for shifting forex rates. For all of 2010, he goes to $163, from $1.67.

EBAY is down 51 cents, or 2.5%, to $20.19.

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