eBay (EBAY) is scheduled to report results of its first quarter after the market close on Wednesday, April 28, with a conference call scheduled for 6:00 pm ET. What to watch: 1. GROSS MERCHANDISE VOLUME: In Q4, eBay reported that its gross merchandise volume was $26.6B, up 21% on an as-reported basis and 18% in constant currency. This growth rate dropped from a Q3 GMV up 22% on a as-reported basis and 21% in constant currency, following a drop in growth rate in the prior quarter. 2. GUIDANCE: Along with Q4 earnings, the company guided to Q1 non-GAAP earnings per share of $1.03-$1.08 per share. Analyst consensus, which was 86c at the time of earnings, has risen to $1.07. eBay also pointed toward Q1 revenue of $2.94B-$2.99B. Consensus which was $2.53B at the time of the last report has increased to $2.97B. 3. INITIATIVES, UPDATES: In March, eBay introduced a new scanning tool to make listing collectible card games easier. The company said, “Using computer vision technology, the new tool will streamline listing creation for the marketplace’s massive trading card community. Sellers will be able to use the new feature beginning in late April 2021.” 4. CLASSIFIED SALE: In July, eBay and Adevinta (ADEVF) announced they entered into a definitive agreement for eBay to transfer its Classifieds business to Adevinta for a total consideration valued at approximately $9.2B. In February, the company confirmed concerns from the UK Competition and Markets Authority that the transaction could reduce competition and in Mach, eBay announced the CMA had accepted remedies for the transaction. The remedies proposed by eBay and Adevinta include the divestment of each company’s primary classifieds operations in the UK. In 2019, eBay Classifieds Group’s UK business accounted for less than 10% of its consolidated revenues and Adevinta’s UK business accounted for only 1% of its consolidated revenues. On a combined basis, the UK would represent less than 5% of total consolidated revenues. eBay and Adevinta now target closing the transaction in Q2, subject to final ratification of the remedies execution plan by the CMA and receipt of outstanding regulatory approval in Austria. 5. STRATEGIC ALTERNATIVES FOR KOREA BUSINESS: eBay announced in January that it has initiated a process to explore, review, and evaluate a range of strategic alternatives for its Korea business. The company is “considering options that would maximize value for its shareholders and create future growth opportunities for the business.”
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