eBay Inc (NASDAQ: EBAY)
eBay Inc reported higher than expected third-quarter top and bottom lines before releasing a rosy fourth-quarter profit guidance. The e-commerce giant has been spending on brand marketing and product developments in a move aimed at taking on rising competition in the online retail space.
The company’s third-quarter revenues jumped 6% to $2.65 billion, while adjusted earnings increased 19% to 56 cents per share.
eBay stock has lost about 28.9 percent since the beginning of the year through Tuesday, while the Standard & Poor’s 500 has declined 1.2%. The shares gained more than 6% in the extended trading session.
EBAY Earnings & Outlook
The company reported earnings of $720 million for the quarter, compared with $520 million a year earlier. On a per-share basis, eBay earned $0.73 per share, up from $0.48 cents per share, in the comparable period a year ago.
Adjusted for non-recurring items, the earnings totaled to $0.56 per share, an improvement from $0.48 per share, from the third quarter of the previous year. Net sales were $2.65 billion, compared with sales of $2.41 billion in the prior year period.
Analysts polled by FactSet expected adjusted earnings of $0.54 per share on net sales of $2.65 billion. For its fiscal fourth quarter, the e-commerce giant expects earnings in the range of 67 cents to 69 cents per share.
It also forecasts revenues of between $2.85 billion and $2.89 billion during the quarter. Analysts model revenue of $2.91 billion and profit of $0.67 per share, according to figures compiled by Refinitiv.
eBay CEO Comments
“This quarter we continued to make foundational investments to improve the long-term competitiveness of our marketplace while setting the stage for significant growth opportunities,” commented Devin Wenig, President and Chief Executive Officer of eBay Inc. “We will continue to innovate the customer experience while executing our growth initiatives in Payments and Advertising to position eBay for future success.”
eBay, Inc. Company Profile
eBay, Inc. is a commerce company, which engages in the provision of investments and acquisitions to help enable commerce on platforms for buyers and sellers online or on mobile devices. It operates through the following platforms: Marketplace; Classifieds; StubHub, Corporate, and Others.
The Marketplace platform include online marketplace located at www.ebay.com, its localized counterparts and the eBay mobile apps. The Classified platform focuses in collection of brands such as mobile.de, Kijiji, Gumtree, Marktplaats, eBay Kleinanzeigen and others.
The StubHub platform gives online ticket platform located at www.stubhub.com, its localized counterparts and the StubHub mobile apps. eBay competes with Amazon.com, Alibaba, Walmart, Target, and Costco. The company was founded by Pierre M. Omidyar in September 1995 and is headquartered in San Jose, CA. – CNN Money