eBay Inc (EBAY) has reported an 1,144.44 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $5,936 million, or $5.30 a share in the quarter, compared with $477 million, or $0.39 a share for the same period last year. On an adjusted basis, net profit for the quarter was almost stable at $601 million, or $0.54 a share, when compared with the last year period. Revenue during the quarter grew 3.14 percent to $2,395 million from $2,322 million in the previous year period. Gross margin for the quarter contracted 127 basis points over the previous year period to 77.49 percent. Total expenses were 73.36 percent of quarterly revenues, up from 71.49 percent for the same period last year. That has resulted in a contraction of 187 basis points in operating margin to 26.64 percent.
Operating income for the quarter was $638 million, compared with $662 million in the previous year period.
However, the adjusted operating income for the quarter stood at $764 million compared to $799 million in the prior year period. At the same time, adjusted operating margin contracted 251 basis points in the quarter to 31.90 percent from 34.41 percent in the last year period.
"Q4 was a record quarter highlighted by solid performance in our eBay business. During the holiday season, eBay was one of the top consumer shopping destinations in the world and the second most visited eCommerce site in the U.S.,” said Devin Wenig, president and chief executive officer of eBay Inc. “In 2017, we intend to accelerate the progress that we made last year as we continue to execute our business strategy."
For financial year 2017, eBay Inc expects revenue and adjusted revenue to be in the range of $9.300 million to $9.500 million. The company projects diluted earnings per share from continuing operations to be in the range of $1.20 to $1.40. It company projects diluted earnings per share from continuing operations to be in the range of $1.98 to $2.03 on adjusted basis.
For the first-quarter 2017, eBay Inc expects revenue and adjusted revenue to be in the range of $2.170 million to $2.210 million.The company projects diluted earnings per share from continuing operations to be in the range of $0.25 to $0.40. On an adjusted basis, the company projects diluted earnings per share from continuing operations to be in the range of $0.46 to $0.48.
Operating cash flow drops significantly
eBay Inc has generated cash of $2,826 million from operating activities during the year, down 29.93 percent or $1,207 million, when compared with the last year. The company has spent $2,008 million cash to meet investing activities during the year as against cash outgo of $3,611 million in the last year.
The company has spent $744 million cash to carry out financing activities during the year as against cash outgo of $4,554 million in the last year period.
Cash and cash equivalents stood at $1,816 million as on Dec. 31, 2016, down 0.87 percent or $16 million from $1,832 million on Dec. 31, 2015.
Working capital declines
eBay Inc has witnessed a decline in the working capital over the last year. It stood at $5,028 million as at Dec. 31, 2016, down 10.87 percent or $613 million from $5,641 million on Dec. 31, 2015. Current ratio was at 2.31 as on Dec. 31, 2016, down from 3.49 on Dec. 31, 2015.
Days sales outstanding were almost stable at 11 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went down to 24 days for the quarter from 33 for the same period last year.
Debt increases substantially
eBay Inc has witnessed an increase in total debt over the last one year. It stood at $8,960 million as on Dec. 31, 2016, up 32.76 percent or $2,211 million from $6,749 million on Dec. 31, 2015. Short-term debt stood at $1,451 million as on Dec. 31, 2016. Total debt was 37.57 percent of total assets as on Dec. 31, 2016, compared with 37.95 percent on Dec. 31, 2015. Debt to equity ratio was at 0.85 as on Dec. 31, 2016, down from 1.03 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
