NEW YORK (AP) — Analysts expect eBay Inc. to report higher earnings and revenue when the e-commerce company reports its first-quarter results after the market closes on Wednesday.
Though its U.S. business is solid, the lackluster economy in Europe will likely continue to weigh on eBay's business in the region.
Baird analyst Colin Sebastian thinks eBay will meet or do slightly better than Wall Street's expectations in the quarter. He said the company's PayPal business "continues to grow nicely, offset in part by currency and market headwinds from Europe."
Analysts, on average, expect eBay to post adjusted earnings of 52 cents per share on revenue of $3.15 billion, according to a poll by FactSet.
PayPal has been a big source of growth for eBay as it works to expand from e-commerce to brick-and-mortar retailers. It recently launched a service that lets people use their PayPal accounts to pay for merchandise in Home Depot stores, a program that will likely expand to other large retailers. It also unveiled a mobile payments system in March.