EBay 3rd Quarter Earnings Top Expectations; Revenue Misses
SAN JOSE (CBS/AP) — EBay’s third-quarter earnings edged past analysts’ expectations, but revenue rose just short of estimates. The company’s profit and revenue outlook for the current quarter through December was also weaker than expected.
Following the release of results Wednesday, EBay’s stock fell 4.2 percent to $51.26 in after-hours trading.
EBay Inc. said net income in the quarter through September grew 15 percent as revenue rose, thanks to increasing mobile transactions in its online marketplaces eBay and StubHub. It also cited growth in the number of people using its PayPal payments processor.
Net income grew to $689 million, or 53 cents per share, from $597 million, or 45 cents per share, a year ago.
Excluding special items, adjusted earnings came to 64 cents per share, a penny better than expected by analysts polled by FactSet.
Revenue rose 14 percent to $3.89 billion, slightly below the $3.91 billion analysts were looking for. PayPal revenue grew 19 percent to $1.6 billion, while the company’s “marketplaces” revenue grew 12 percent to $2 billion. Revenue from its enterprise services business rose 5 percent to $238 million.
EBay’s forecast for the current quarter predicts adjusted earnings of 79 cents to 81 cents per share, below the 83 cents analysts were looking for. The company also said it expects quarterly revenue of $4.5 billion to $4.6 billion, while analysts were estimating revenue of $4.64 billion.
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