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Online auction house eBay (EBAY, news, msgs) stunned investors this afternoon, missing fourth-quarter estimates by a penny and guiding lower for the next quarter and next year.

Shares promptly tumbled more than 12% in heavy trading from $103.05 to $90.10.

Ebay said it earned 33 cents a share before items. Analysts had expected 34 cents for the fourth quarter. Revenue was $935.7 million, slightly ahead of estimates.

For the next quarter, eBay projects earnings at 34-to-35 cents a share, compared with estimates of 40 cents a share. Projected revenue at $1.01 billion to $1.03 billion is lighter than estimates of $1.05 billion. Earnings for the year will be $1.48 to $1.52. Estimates are for $1.60.

The stock, which fell under its 50-day moving average on Jan. 5, was below its 200-day moving average of about $92 this afternoon. Briefing.com suggested the 200-day moving average could provide support to the stock later.

Ebay actually reported what it termed strong results:


Revenue for the fourth quarter was up 44% from a year ago. 2004 revenue was up 51% from a year ago.

Fourth-quarter net income was up 44% from a year ago. Net income for all of 2004 was up 76% from a year ago.
Separately, eBay said it will split its stock 2-for-1 on Feb. 16 for shareholders of record on Jan. 31

Comments

  • MyqqyMyqqy Posts: 9,777
    image
    My style is impetuous, my defense is impregnable !
  • And Meg the Great said they'd be spending another 300 million on China, rather than domestic services. Expect

    a lot more Wary big Twrade Dollars-much silver-me ship, u bid.
    morgannut2
  • lavalava Posts: 3,286 ✭✭✭
    You should warn people this is OT.

    You should also let people know that ebay has a price/earnings ratio above 97, which pundits justify based on earnings growth, and since the earnings growth didn't not show up in the latest quarter, one might reasonably expect the pundits to cool on the stock. Downgrading even to a hold is dicey at these levels in the absence of growth.
    I brake for ear bars.
  • ms70ms70 Posts: 13,954 ✭✭✭✭✭

    eBay closed today at $103.05, down $3.32 or -3.12%, with the day's range being $102.87 - $107.77.

    Great transactions with oih82w8, JasonGaming, Moose1913.

  • robertprrobertpr Posts: 6,862 ✭✭✭
    Well, let's see. Revenues beat expectations, earnings did not. I haven't dug into the report yet, but on the surface I'd say they're probably spending more than expected with expansion into overseas markets and more likely taking a hit on continuing costs to integrate PayPal and other less important pet projects.

    I expect to see some cost cutting ahead, especially in the department of programmers and other labor. Expect less changes to the website in the future. Thankfully.
  • lavalava Posts: 3,286 ✭✭✭
    As could have been predicted, the downgraders were out in force today.

    Link
    I brake for ear bars.
  • flaminioflaminio Posts: 5,664 ✭✭✭
    Ouch, brutal. Down to $84 now. I'm losing money big time today... Ah, well - c'est le vie...
  • NoGvmntNoGvmnt Posts: 1,126
    "You should warn people this is OT."

    "You should also let people know that ebay has a price/earnings ratio above 97."


    Lava, Ebay is never OT on these threads, and how is it my responsibility to advise anyone of the PE ration of Ebay considering I am not advising anyone to buy or sell the stock?




    Ouch, brutal. Down to $84 now. I'm losing money big time today"

    Bob, just wait until the shareholder lawsuits start flowing.

    Jim

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