By Davit Kirakosyan and Senad Karaahmetovic
eBay (NASDAQ:EBAY) reported its Q4 results, with EPS of $1.07 coming in better than the consensus estimate of $1.06. Revenue fell 4% year-over-year (down 1% on an FX-Neutral basis) to $2.5 billion, beating the consensus estimate of $2.46B.
Gross merchandise volume was down 12% year-over-year (down 6% on an FX-Neutral basis) to $18.2B.
For Q1/23, the company expects EPS in the range of $1.05-$1.09, compared to the consensus of $1.06, and revenue in the range of $2.46-2.5B, better than the consensus estimate of $2.37B.
The company hiked its dividend by 13.6% to $0.25 per share, or $1 annualized, for an annual yield of 2.1%. The dividend will be payable on March 24, 2023, to stockholders of record on March 10, 2023, with an ex-dividend date of March 9, 2023.
Goldman Sachs analysts said the Q4 results showed that macro headwinds continue to persist into 2023. As a result, the analysts reiterated a Sell rating and increased the price target by $1 to $39 per share.
"We think that EBAY mgmt is aiming their investment cadence toward the right thematic elements (ads/payments, shipping program, cross-border, focus categories & shareholder returns)," they said in a client note.
Barclays analysts continue to see "solid value" in EBAY shares, hence maintained an Overweight rating.
"EBAY shares feel solid in the mid-$40's with '23 ests reset to a fairly conservative trajectory. 13x GAAP P/E and strong capital returns are the bull case, with fundamentals looking more like a depleting oil well than a growth internet business, which in this tape might be a good place to put money to work," the analysts wrote.
eBay shares are trading 4.5% lower in pre-market Thursday following the Q4 earnings report.