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EBay's Earnings Climb 53% On Strong Auction Revenue





Good job eBay! Still, at 50 times forward P/E, the stock is not cheap.

From Wall Street Journal:

The backlash began in January when the company reported quarterly results that fell below analyst expectations. Since then, eBay has faced harsh criticism for raising its merchant fees and for not being more vigilant about weeding out the mischief makers and scam artists who make bogus bids or peddle merchandise without ever delivering the goods.

EBay management has been aggressively reaching out to many of its disgruntled sellers to address their concerns even as management sought to assure investors that many of the recent criticisms of the company are invalid. The latest quarter will likely provide eBay with even more fodder to rebut its critics.

For the second time in as many quarters, eBay raised its 2005 earnings and revenue targets. The company now expects revenue of $4.34 billion to $4.41 billion, compared with its previous forecast of $4.27 billion to $4.36 billion. EBay forecast earnings of 77 cents to 78 cents a share, an increase from its previous guidance of 71 cents to 73 cents a share.

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