eBay Beats on Both Top and Bottom Lines

eBay (Nasdaq: EBAY  ) reported earnings Wednesday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), eBay beat slightly on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.

Gross margins shrank, operating margins dropped, and net margins expanded.

Revenue details
eBay reported revenue of $3.40 billion. The 30 analysts polled by S&P Capital IQ foresaw a top line of $3.36 billion on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $2.76 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.56. The 32 earnings estimates compiled by S&P Capital IQ averaged $0.55 per share. GAAP EPS of $0.53 for Q2 were 141% higher than the prior-year quarter's $0.22 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 71.0%, 100 basis points worse than the prior-year quarter. Operating margin was 20.5%, 40 basis points worse than the prior-year quarter. Net margin was 20.4%, 1,010 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.41 billion. On the bottom line, the average EPS estimate is $0.55.

Next year's average estimate for revenue is $14 billion. The average EPS estimate is $2.35.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,656 members rating the stock outperform, and 563 members rating it underperform. Among 1,175 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,085 give eBay a green thumbs-up, and 90 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on eBay is outperform, with an average price target of $44.31.

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