Will PayPal’s Mobile Products Provide a Surprise Lift to eBay?

When eBay reports first-quarter earnings this afternoon, analysts will be looking for early signs that its recent mobile product launches are starting to take off.

During the quarter, the company’s PayPal division rolled out in-store checkout at 2,000 Home Depots and PayPal Here, a new service for merchants that allows them to swipe credit cards using a mobile phone.

PayPal Here is competing against Square, which I reported today is seeking funding at a $4 billion valuation.

Because these offerings are so new, eBay does not currently include any potential revenue in its forecast. It may continue to say today that it is too early to tell what impact, if any, is happening on the business.

“We believe new product launches (in-store check out, Mobile offerings, PayPal Here) could present some wildcard upside to 2012 guidance,” said Citi analyst Mark Mahaney in a note to investors.

Analysts, on average, expect eBay to report earnings of 52 cents per share on revenue of $3.15 billion, according to a poll by FactSet.

Those results are on the high side of eBay’s own forecast, which is estimating revenue in the range of $3.05 million to $3.15 million, with earnings per share of 50 cents to 51 cents, not including some expenses.

Analysts will also be looking to see how the transformation of its core marketplaces business is going, and how well its acquisition of GSI business is progressing. Going forward, the company wants to leverage its expertise in both e-commerce and payments to provide tools to third-party retailers that helps them fend off competitors, like Amazon.com.

The company, which will release earnings after the bell, is trading down six cents at $36.03 a share. The stock recently hit a 52-week high of $38.18.


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