Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Markets & Finance

RBC Cuts eBay to Sector Perform

RBC downgraded eBay (EBAY) to sector perform from outperform, after the company recently posted its first quarter results.

eBay had 17 cents earnings per share (EPS) and said it expects 14 to 16 cents in the second quarter, as well as 65 cents to 71 cents in 2006.

Analyst Jordan Rohan says the first quarter top-line and bottom-line results were both in line with his estimates. However, he says average selling prices (ASPs) of goods sold appear to have fallen in the first quarter -- the second quarter in a row of disappointing performance on that metric. Also, he thinks Google's efforts in classifieds and payment systems will at some point encroach on eBay's core franchises as well as hasten revenue deceleration. To reflect these factors, he cuts his $1.06 2006 EPS estimate to 99 cents and his $1.39 2007 estimate to $1.28. He lowers his $50 stock price target to $42.

blog comments powered by Disqus