On February 23, eBay Inc. (EBAY) posted financial results for 2021 Q4 and full-year along with the outlook for 2022. Consequently, due to weak outlook shares of the company slumped further to a new low in the after-hours session. The company beat its earnings expectations for the quarter.
EBAY stock was already trading in the red before the earnings were released. With a loss of 1.02%, the stock remained in the red at the closing price of $54.59 in the regular session. Following the declaration of the results, the stock plunged further down to reach $50.35 in the after-hours. Hence, EBAY stock lost 7.77% or $4.24 at an after-hours volume of 4.25 million. Thus, the stock has reached a new 52-week low against the previous $51.51, on Wednesday.
The commerce giant, eBay Inc. has a market capitalization of $34.52 billion with 626 million shares outstanding. In the past five days, EBAY stock has declined by 5.31% while it has lost 17.91% year to date.
EBAY’s Q4 Highlights
In Q4 2021, the company’s revenue increased by 5% YOY to $2.6 billion.
Moreover, the company reported a non-GAAP net income of $647 million or $1.05 on a diluted share basis, from continuing operations.
The operating cash flow and free cash flow were $475 million and $372 million, respectively.
Additionally, the annual active buyers went down by 9% while the annual active seller by 8% YOY.
Full-Year 2021 Highlights
For fiscal 2021, the company’s revenue increased by 17% YOY to $10.4 billion.
Furthermore, the non-GAAP net income was $252 million or $0.38 on a diluted share basis, from continuing operations.
EBAY had an operating cash flow of $3.1 billion and a free cash flow of $2.6 billion from continuing operations in fiscal 2021.
Dividend
eBay also announced a cash dividend of $0.22/share to record holders of March 10, 2022. The dividend would be payable on March 18, 2022.
EBAY’s Future Outlook
For fiscal 2022, the company expects revenue of $10.3-$10.5 billion with non-GAAP diluted EPS of $4.20-$4.40.
In addition, for Q1 2022, the company expects revenue of $2.43-$2.48 billion with non-GAAP diluted EPS of $1.01-$1.05.
Trading Cards Authentication
On January 25, the company declared the launch of the Authenticity Guarantee service for trading cards. Therefore, single ungraded trading cards with a value over $750 in the U.S. would be authenticated now. The company plans to extend the service to include those with a selling value of $250+ by mid-2022.
EBAY’s Investor Day
On January 24, 2022, the company notified that it will be hosting a virtual investor day on Thursday, March 10, 2022, at 8:00 am PT. The company’s management will present at the event followed by Q&A sessions.
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