Analyst Jeetil Patel says results came in well above his and the Street's estimates. He raised the $3 billion 2004 revenue estimate to $3.19 billion, and upped the $1.06 earnings per share estimate to $1.16. He sees $4.13 billion in 2005 revenue, and $1.61 earnings per share. He also notes the number of transactions per active user rose to 3.6, both sequentially and year over year.
Patel reiterates his buy rating, and continues to recommend eBay as a core holding for investors looking for exposure to the sector. He says eBay is depressing multiple growth levers across platforms, thus driving momentum in this increasingly competitive environment. Patel raised his $75 target to $87 or 54 times his 2005 earnings per share estimate.