eBay (EBAY) Tops Q4 EPS by 3c; Issues Solid Outlook, Initiates Divided, Raises Buyback

eBay (NASDAQ: EBAY) reported Q4 EPS of $0.71, $0.03 better than the analyst estimate of $0.68. Revenue for the quarter came in at $2.9 billion versus the consensus estimate of $2.87 billion.

GUIDANCE:

• First quarter 2019 — The company expects net revenue between $2.55 billion and $2.60 billion, representing Organic FX-Neutral growth of 0% - 2%, with GAAP earnings per diluted share from continuing operations in the range of $0.40 - $0.44 and non-GAAP earnings per diluted share from continuing operations in the range of $0.62 - $0.64.
• Full year 2019 — The company expects net revenue between $10.7 billion and $10.9 billion, representing Organic FX-Neutral growth of 1% - 3%, with GAAP earnings per diluted share from continuing operations in the range of $1.83 - $1.93 and non-GAAP earnings per diluted share from continuing operations in the range of $2.62 - $2.68.

Capital Structure Evolution

In order to evolve eBay\'s capital structure given its strong cash generation profile and shareholder return objectives, the company today announced:

• Initiation of a quarterly dividend of $0.14 per share, with the first quarterly dividend to be paid on or about March 20, 2019 to shareholders of record as of the close of business on March 1, 2019
• Expect to exit 2019 with cash and investments of approximately $3.5 billion
• Targeting mid-term leverage of approximately 1.5x net debt and gross debt below 3.0x EBITDA
• Increase in share repurchase authorization by an additional $4.0 billion with no expiration, with an expected 2019 share repurchase of approximately $5.0 billion
• Expect to return approximately $7.0 billion to shareholders through dividends and repurchases over the next two years, with approximately $5.5 billion in 2019 and approximately $1.5 billion in 2020

For earnings history and earnings-related data on eBay (EBAY) click here.

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