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Online auction giant eBay reported better than expected second-quarter earnings after the market close Wednesday. However weak revenue  guidance was short of estimates sending $EBAY down over 6% after the release, dissappointing during it's summer sale.


Earnings

In the second quarter, adjusted earnings rose 18% to $0.53 per share beating analysts’ estimates. Reported net income was $638 million or $0.64 per share, compared to $29 million or $0.03 per share last year. Revenues rose 9% to $2.6 billion with a broad-based uptick in the performance of the business segments.

eBay Inc NASDAQ: $EBAY

Market Reaction > Pre-market 35.35 −2.60 (-6.85%)

Highlights

  • eBay raised its global user base by 4% to 175 million in the second quarter.
  • At $23.6 billion, gross merchandise volume was up 10% compared to last year.
  • During Q2, the company expanded its footprint in the Japanese market by acquiring the local arm of online shopping platform Giosis.
  • eBay also repurchased around 26 million shares for $1 billion.
  • Looking ahead, eBay is planning to divest its stake in India-based e-commerce firm Flipkart and re-launch its own Indian operations. The sale is expected to generate gross proceeds of about $1.1 billion.

eBay Earnings Q2 18

Outlook

eBay lowered third-quarter and full-year guidance below analysts’ estimates. Revenue is estimated to be between $2.64 billion and $2.69 billion in the next quarter. GAAP earnings and adjusted earnings are expected to be in the range of $0.37 – $0.41 per share and $0.54 – $0.56 per share respectively.

For the whole of fiscal 2018, eBay is looking for earnings in the range of $1.91 per share to $2.01 per share on revenues of $10.75 – $10.85 billion. Full-year adjusted income is expected to be between $2.28 per share and $2.32 per share.

Source: alphastreet.com

Source: eBay, Alpha Street

From the TradersCommunity News Desk

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