For eBay, Slim Earnings Beat Is Good Enough
eBay shares rose early Wednesday after it released its third-quarter financial results after the markets closed on Tuesday.
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When eBay Inc. (NASDAQ: EBAY) released its third-quarter financial results after the markets closed on Tuesday, the online auctioneer said that it had $0.56 in earnings per share (EPS) and $2.65 billion in revenue. That compares with consensus estimates of $0.55 in EPS and $2.65 billion in revenue, as well as the $0.47 per share and $2.50 billion posted in the same period of last year.
During the third quarter, eBay grew active buyers by 4% across its platforms, for a total of 177 million global active buyers.
The Marketplace platforms delivered $2.1 billion of revenue and $21.5 billion of gross merchandise value (GMV). Marketplace revenue growth was 6% on an as-reported basis and 5% on an FX-neutral basis, and GMV was up 5% on both an as-reported and FX-neutral basis.
StubHub drove revenue of $291 million, up 7% on both an as-reported and FX-neutral basis, and GMV of $1.2 billion, up 7% on both an as-reported and FX-neutral basis. Separately, Classifieds platforms delivered revenue of $254 million, up 8% on an as-reported basis and 11% on an FX-neutral basis.
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Looking ahead to the fourth quarter, the company expects to see EPS in the range of $0.67 to $0.69 and revenue between $2.85 billion and $2.89 billion. Consensus estimates call for $0.67 in EPS and $2.9 billion in revenue.
Devin Wenig, president and CEO of eBay, commented:
This quarter we continued to make foundational investments to improve the long-term competitiveness of our marketplace while setting the stage for significant growth opportunities. We will continue to innovate the customer experience while executing our growth initiatives in Payments and Advertising to position eBay for future success.
Shares of eBay closed Tuesday at $27.42, in a 52-week range of $26.36 to $46.99. The consensus analyst price target is $40.26. Following the announcement, the stock was up about 6% at $29.15 in early trading indications Wednesday.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
