eBay Forecasts Continued Growth for the Next Three Years

Ebay Inc. forecast that they will experience huge growth over the next three years.  That was the story told by Ebay Inc., as the company projected a positive future at the annual eBay investor day.  All of the major players of the company were on hand to speak to analysts. Projections were in regards to earnings, cash flow, transaction margins, and gross merchandise value.   Most of the forecasts were for the year 2015.

The Chief Financial Officer of the company, Bob Swan, forecast earnings per share growth of 15 percent to 19 percent over the next three years.  Swan also forecast that the company would have a huge cash flow.  The Chief Financial Officer stated that over the next three years the company expected a projected cash flow of over $11 billion.  Additionally, Swan noted that PayPal’s offline business has the potential to be able to generate large transaction margins.  PayPal’s transaction margins were stated to be about 40 percent.

Moreover, the President of PayPal also projected an optimistic future.  David Marcus, PayPal President, reported to analysts that the company expects growth over the next couple of years.  In fact, PayPal expects that business will double by 2015. The company says that the increased business will be due to the push to extend the reach of PayPal payment services.  The company has worked to extend payment services into the physical retail sphere.  This change in strategy is expected to pay off with the doubling of its business over the next couple of years.

Meanwhile, the Ebay Marketplaces chief also had positive news to report about the company. Devin Wenig, Marketplaces chief, stated that the company is aiming for $110 billion of Gross Merchandise Value in 2015.  This is a rather large increase, as the Gross Merchandise Value of the company was $75 billion in 2012.

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