Analysts forecast EBay's solid U.S. sales in Q4

PanARMENIAN.Net - EBay likely saw solid U.S. sales over the holidays, analysts say, which should bode well for the e-commerce and online payments company's fourth-quarter results, scheduled to be released after the market closes on Wednesday, January 18.

But the economic turmoil in Europe is likely to wear on eBay's outlook for 2012, AP reports.

Benchmark analyst Frederick W. Moran said a "strong domestic holiday season could spark eBay's U.S. marketplace to show growth at least as fast as overall U.S. ecommerce." But he added that weakening economic indicators in Europe could dampen eBay's guidance for this year.

"Even Europe's most impressive economy, Germany may show little growth in 2012," Moran wrote in a note to investors, adding that Germany is eBay's largest market in Europe.

Analysts, on average, are expecting earnings of 57 cents per share on revenue of $3.32 billion, according to a poll by FactSet.

In October, eBay forecast adjusted earnings of 55 cents to 58 cents per share, on revenue of $3.2 billion to $3.35 billion.

Citi Investment Research analyst Mark S. Mahaney says that the softness in Europe, a key market for eBay, will likely limit the chances that the results will beat estimates.