EBay Meets Earnings Views But Shares Tumble On Weak Outlook

James Marshall
October 19, 2017

On that basis, analysts on average were expecting a profit of 59 cents per share, according to Thomson Reuters I/B/E/S. In last year's third quarter, eBay posted earnings of 45 cents per share on $2.2 billion in revenue. Adjusted earnings were also 48 cents a share. Non-GAAP earnings were also 48 cents per share with revenue of $2.4 billion, up 9 percent from the same period past year.

EBay (NASDAQ:EBAY) reports that Q3 gross merchandising volume rose 8% Y/Y to $21.7B.

"In Q3, we drove acceleration across all three of our platforms, delivering strong top and bottom line financial results and our fastest volume growth in over three years", said eBay CEO Devin Wenig.

Revenue in the quarter increased 8.7 percent to $2.41 billion, edging past analysts' estimate of $2.37 billion.

The online marketplace now expects adjusted per-share earnings of $1.99 to $2.01 on as much as $9.57 billion in sales, compared with prior guidance of $1.98 to $2.03 a share on up to $9.5 billion in sales. "Our customers are responding to the significant product enhancements we have been making, and this is reflected in our results".

Despite this growth, the San Jose, California-based company said its operating profit margin decreased slightly to 24 percent in the quarter, from 24.4 percent a year earlier.

EBay shares have risen 28 percent since the beginning of the year, while the Standard & Poor's 500 index has risen 14 percent.

During the quarter eBay added almost 2 million active buyers across its platforms, for a total of 168 million global active buyers.

EBay shares were down 5%, near 36.10 during after-hours trading on the stock market today.

Other reports by Click Lancashire

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