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.
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.
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: eBay, Alpha Street
From the TradersCommunity News Desk