On The Fly: What to watch in eBay earnings report

eBay (EBAY) is scheduled to report results of its second quarter after the market close on Wednesday, July 18, with a conference call scheduled for 5:00 pm ET. What to watch: 1. GROSS MERCHANDISE VOLUME: In the first quarter, eBay reported that its gross merchandise volume, or the amount of sales it helps facilitate, grew 13% on an as-reported basis, and 7% in constant currency, to $23.6B. This growth rate was up from the fourth quarter growth of 10% on a reported basis, and 7% in constant currency, following an increase in growth rate from the prior two quarters. Investors will be anxious to see if the company can continue to accelerate GMV growth. 2. GUIDANCE: With its last report, eBay guided to Q2 adjusted earnings of 50c-52c per share. The consensus forecast, which was 52c at the time of the company's report, has slightly decreased to 51c. The company pointed toward Q2 revenue of $2.64B-$2.68B. The consensus forecast, which was $2.69B at the time, has dropped to $2.66B. 3. INITIATIVES AND PARTNERSHIPS: eBay has taken on a number of initiatives and partnerships to improve the user experience and visibility. In April, eBay and PayPal (PYPL) confirmed the signing of an agreement to offer PayPal as a way to pay on eBay until July 2023. The agreement builds on the payments partnership between the companies to make PayPal available as a payment option on eBay's new intermediated payments model. In May, Pitney Bowes (PBI) announced the renewal and multi-year extension of its partnership with eBay, which focuses on providing a secure and easy way for U.S.-based sellers to "sell internationally and ship domestically". Also in May, eBay announced plans to relaunch eBay India after notifying Flipkart and Walmart (WMT) that it intended to sell its holdings in Flipkart. Following the close of that transaction, eBay said it would end its current strategic relationship with Flipkart, which included unwinding its commercial agreements and terminating Flipkart's license to use the eBay.in brand.