eBay has released a report for the fourth quarter and all of 2020. During the main trading session, the shares rose by 1.2%, and after the main session closed, they added another 11.1%.
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eBay's fourth-quarter results were higher than analysts ' consensus estimates, which had expected adjusted earnings of $0.83 on revenue of $2.7 billion.Financial topics are now relevant and at the peak of the rise.You can work and get additional revenue by mastering a few simple steps.For more information, you can also find out from which has proven itself with good reviews.
- The results were higher than the consensus forecasts
- eBay's forecasts for the first quarter of 2021 exceeded analysts ' expectations
- The company continues to benefit from the restrictive measures around the pandemic
Key financial indicators for the fourth quarter of 2020:
- Revenue increased 28.3% YoY to $2.9 billion.
- Operating profit increased by 41.6% YoY to $677 million.
- Adjusted EPS increased 30.3% YoY to $0.86
- The number of active customers increased by 7%, to 185 million
Full-year results in 2020:
- Revenue increased by 18.9% YoY to $10.3 billion.
- Operating profit increased by 45.7% YoY to $ 2.7 billion
- Adjusted EPS was $2.29, up 49% from a year earlier
"We ended the year with good financial results. We will continue to invest in products and technologies to provide the world's best market for our customers," said Jamie Iannone, CEO of eBay.
According to Yannone, the updated strategy played an important role: the company attracted customers by expanding the range of fashionable products, simplifying payments and improving the mobile app.
Gross merchandise volume (GMV) increased by 21% to $26.6 billion (18% at a neutral exchange rate). The annual number of active buyers increased by 7%, to 185 million. Advertising revenue reached a new record in 2020 — more than $ 1 billion.
The company said the buyback program will be expanded to $ 4 billion.
"Ebay is increasingly proving that it is able to consolidate the successes achieved thanks to Covid. We expect these trends to become increasingly entrenched in consumer behavior, providing support in 2021, " said Wedbush analyst Igal Arunyan.
According to eBay forecasts, in the first quarter of 2021, revenue will be $2.84-2.99 billion, which is an average of 23% more than last year. Adjusted EPS is expected at $1.03–1.08. Analysts ' forecasts are somewhat more modest: EPS — $0.85 with revenue of $2.5 billion.
"Coming out of the pandemic, we will be stronger than ever," Jamie Iannone told Reuters in an interview.
Since the beginning of the year, eBay shares have increased by 15.5%, and over the past year — by 55.2%.
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