Jan. 23 (Bloomberg) -- Meg Whitman, EBay Inc.'s chief executive officer since 1998, may cap her career with an earnings projection that trails analysts' estimates.

EBay, the world's largest online auctioneer, may forecast 2008 profit today that's less than the average analyst estimate of $1.67, said Martin Pyykkonen of Global Crown Capital LLC in San Francisco. EBay may say fourth-quarter profit from continuing operations rose 51 percent to 41 cents, according to the average estimate of 20 analysts.

EBay might require job cuts and more advertising than planned by Whitman to spur growth of its auctions, analysts said. Those duties may go to John Donahoe, who runs EBay's auctions unit, the Wall Street Journal said yesterday in a report that Whitman, 51, plans to retire.

``EBay is in the midst of significant change, and sometimes it's easier done with a new person,'' Steve Weinstein, a Pacific Crest Securities analyst in Portland, Oregon, said yesterday. ``It depends on the person they bring in.''

Jose Mallabo, a spokesman for San Jose, California-based EBay, said yesterday the company won't comment on Whitman's plans.

EBay rose 46 cents, or 1.7 percent, to $27.59 at 9:55 a.m. in Nasdaq Stock Market composite trading. The stock rose 10 percent in 2007, ending two years of declines that reflect slowing growth of EBay's U.S. auctions, where customers buy and sell merchandise from luxury automobiles to exercise equipment.

Tim Boyd of American Technology Research in Greenwich, Connecticut, said auction-site listings grew faster than he projected and that he expects fourth-quarter profit to beat estimates by 1 cent and revenue to exceed projections. He recommends buying the shares.

Economic Challenge

EBay's full-year profit forecast may miss projections, Boyd said, because of slowing consumer spending and extra outlays to improve auction sites.

Whitman tried to lure customers by making it easier for them to find concert tickets and vintage harmonicas by simplifying searches and reducing listings. EBay acquired ticket reseller StubHub and Web recommendation site StumbleUpon last year to attract more customers.

``Whether Meg stays on or new blood comes in, the questions for EBay are growth related,'' San Francisco-based Pyykkonen said yesterday. He has a neutral rating on the stock.

Should Whitman retire before March, she'll be true to her comment of recent years that CEOs shouldn't stay in the job for more than 10 years.

`Best Job'

Whitman told analysts in 2004 she had ``one of the best jobs in America.'' The next year, she interviewed for the top job at Walt Disney Co., where she previously worked as senior vice president of marketing for consumer products.

She started her career in 1979 at Procter & Gamble Co. before moving on to stints at Stride Rite Corp. and Hasbro Inc., where she was responsible for marketing toy brands Playskool and Mr. Potato Head, according to Whitman's biography on EBay's Web site.

Whitman also worked at Bain & Co., a consulting firm from which she hired Donahoe three years ago to expand EBay's auction sites globally. He may move more aggressively than Whitman to cut costs, boost advertising and change auction fees to draw more users, said Jeetil Patel, a Deutsche Bank Securities Inc. analyst.

``Advertising and marketing investments may be necessary at EBay in order to reinvigorate growth at the company,'' San Francisco-based Patel wrote in a Jan. 21 note to clients. ``EBay could look to reduce headcount modestly here in early 2008 in an effort to manage profitability.''

Sales Slowdown

Fourth-quarter revenue may increase 24 percent to $2.14 billion, according to the average estimate of 20 analysts. That would be the smallest increase since the company went public in 1998. EBay is getting more growth from overseas auctions and PayPal electronic payments, both of which have outpaced gains from U.S. auctions.

Amazon.com Inc., the world's largest Internet retailer, last year began offering Internet payment services that are designed to help Web site builders use a process similar to PayPal. EBay's increased spending on marketing and product development will be ``aimed squarely at Amazon,'' Boyd said in a note to clients yesterday.

EBay's largest acquisition, its $2.6 billion takeover of Internet telephone service provider Skype, didn't deliver as Whitman predicted in 2005. She said Internet calling would encourage buyers and sellers to talk and spur auction revenue.

Instead, EBay took a charge last year of $1.39 billion on Skype, leading to the company's first quarterly loss since it went public in 1998. Some analysts had criticized the company for paying too much for the then-unprofitable Luxembourg-based startup.

``Skype was definitely a misstep, and shame on Meg for that,'' Pyykkonen said yesterday. ``But I don't think this is a situation where she has to go.''

To contact the reporter on this story: Chris Burritt in Greensboro, North Carolina at cburritt@bloomberg.net

Last Updated: January 23, 2008 09:59 EST