Options / Finance

Earnings: Ebay And Verizon Set To Report Q1

From Options
April 19, 2017 - 12:08pm
Earnings have been pretty positive so far in Q1 2017 with many of the major banks beating analyst expectations. There’s still a lot of companies left to report, but 76\% of the companies in the S&P 500 (SPX) that had reported earnings as of April 13 have beat the mean analyst EPS estimate while only 59\% have beat mean analyst sales estimates, according to FactSet. Next up in first-quarter results, eBay Inc (NASDAQ: EBAY) reports after market close today and telecom giant Verizon Communications Inc. (NYSE: VZ) reports before market open on Thursday. eBay Inc. (EBAY): Margins and Competition in Focus EBAY has been in the midst of a transformation effort to adapt to a changing ecommerce landscape. The company “faces large competitive threats from Amazon.com, Inc. (NASDAQ: AMZN), new startups and companies, such as Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) or Facebook Inc (NASDAQ: FB), that begin to add buy button features,” according to RBC Capital Markets Analyst Mark Mahaney. In a recent company blog post, CEO Devin Wenig wrote “for the past 18 months, we’ve been working on an ambitious replatforming of eBay by leveraging new technology to redefine what online shopping means today,” and that “online commerce has matured in the last few years to the point where consumers expect fast and free shipping in defined delivery windows”. EBAY recently announced guaranteed delivery in three days or less on 20 million items, acknowledging customer preferences AMZN has become known for.  Earlier this month, EBAY announced it is selling its Indian business to Flipkart, a leading ecommerce company in India, and will also invest $500 million for an equity stake in the company. EBAY’s cash investment was part of a ...Full story available on Benzinga.com

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