Wednesday, October 30, 2024

EBay Sinks 8% Despite Earnings Beat

 Shares of online commerce site eBay 

EBAY

-0.22%
 fell 8% in after-hours trading to $57 after it reported earnings.

Its full-year revenue guidance came in light. The company estimated revenue of $10.23 billion to $10.29 billion, versus analyst estimates of $10.32 billion. That weakness comes in large part from the expected fourth-quarter revenue of $2.53 billion to $2.59 billion versus consensus estimates of $2.65 billion.

Third-quarter numbers uniformly beat analyst estimates, however, if only by a hair. Revenue was $2.58 billion, above the $2.55 billion expected. Earnings of $1.19 a share beat expectations for $1.18 a share. And gross merchandise volume, which measures the value of goods sold, came in at $18.3 billion, just above the $18.1 billion anticipated.

The company expects fourth-quarter earnings per share in the range of $1.17 to $1.22. Analysts were expecting $1.22 a share. For the full-year, eBay expects earnings of $4.80 to $4.85 a share, with a midpoint matching estimates.

Some analysts had warned of potential fourth-quarter softness. Benchmark’s Daniel Kurnos wrote Tuesday before earnings were released that “another heavy discount-driven holiday period” could limit eBay’s near-term margin upside.

Before earnings were announced, shares were up 44% year-to-date.

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