A sign is posted in front of eBay headquarters in San Jose, California.
Justin Sullivan | Getty Images
Shares of eBay slumped about 9% in extended trading on Wednesday after the online marketplace posted its third-quarter earnings and gave guidance for the fourth quarter that fell short of Wall Street’s expectations.
Here’s how the company did:
- Earnings: $1.19 per share vs. $1.18 per share expected by LSEG
- Revenue: $2.58 billion vs. $2.55 billion expected by LSEG
For the current quarter, eBay predicted revenue to between $2.53 billion and $2.59 billion, which would represent a 1% decline to a 1% increase year over year. The guidance trailed the average analyst estimate for fourth-quarter revenue of $2.65 billion, according to StreetAccount.
The company also said it expects $1.17 to $1.22 in adjusted earnings per share in the fourth quarter. The top end of the range is in line with consensus estimates of $1.22 per share.
EBay has faced heightened competition in e-commerce from rivals like Amazon, Walmart and Etsy, as well as low-cost upstarts Temu and Shein, which both have ties to China. To keep buyers and sellers returning to its site, the company has leaned into so-called “focus categories,” such as collectible sneakers, used luxury goods and auto parts. It has also announced artificial intelligence tools that provide personalized recommendations for shoppers and streamline the creation of seller listings.
The company didn’t provide clarity on its forecast in the earnings release. But Steve Priest, eBay’s chief financial officer, said the company has seen “solid execution” on its strategic initiatives, which drove continued gross merchandise volume “growth amid a dynamic macro environment.”
GMV, or the dollar value of items sold on eBay’s marketplace, grew 2% year over year to $18.3 billion, eBay said, which topped analysts’ projected $18.1 billion, per StreetAccount estimates.
