eBay (EBAY) released its fourth quarter financial results after the closing bell on Wednesday. Here’s what the report means for mutual fund investors.
Inside EBAY's Results
The company reported earnings of $939 million, or 75 cents per share, up from $850 million, or 65 cents per share, last year. Excluding special items, earnings were 90 cents per share – above analysts’ view of 89 cents.
Revenue increased to $4.92 billion from $4.53 billion in the year prior. Analysts expected to see revenue of $4.93 billion.
The company expects to see Q1 GAAP earnings between 37 cents and 43 cents per share and non-GAAP earnings between 68 cents and 71 cents per share. Revenue is expected to be between $4.35 billion and $4.45 billion. Analysts expect to see Q1 EPS of 76 cents and $4.70 billion in revenue.
For FY2015, GAAP earnings are expected to be between $2.17 and $2.32 per share.Non-GAAP earnings are expected to be between $3.05 and $3.15 per share. Revenue is expected to be between $18.60 billion and $19.10 billion. On average, analysts expect to see EPS of $3.26 and $19.97 billion in revenue.
eBay announced that it will cut about 2,400 jobs, or 7% of its workforce.
Future Spin-Offs in the Spotlight
The company recently announced that it would spin-off its PayPal business, although it did not specify a timetable for the split. As eBay’s management tries to strategize a plan with its other business units, Wall Street has been determining how much the company is actually worth if it is broken up.
Mutual Funds to Watch
Investors interested in EBAY may be interested in the funds listed below. These funds currently have the largest stakes in the company.
|VTSMX||Vanguard Total Stock Market||1.52%|
|FCNTX||Dodge & Cox Stock||1.32%|
|NYVTX||Vanguard 500 Index||0.99%|
The Bottom Line
The funds listed above allow investors to gain exposure to eBay while remaining diversified. Investors interested in IBM may also be interested in Amazon (AMZN) or Google (GOOG).