Ebay (EBAY) Fails To Meet Expectations

Shares of Ebay (

) are down over 7% in after hours trading. Earnings were solid rising 11% during the previous quarter. Ebay tempered investor enthusiasm by lowering its full year earnings outlook. Analysts were expecting revenue of $2.2 for the current quarter. Ebay dropped guidance to as low as $2.15 billion for the quarter. EPS is expected between 37 to 39 cents. This is below the street's estimate of 40 cents. Despite the results CEO John Donahie is optimistic. "Our first quarter results reflect another strong step toward achieving our three-year growth and profitability goals,” said eBay President and CEO John Donahoe. "We are becoming a more customer-focused and technology-driven company, delivering more innovative products and experiences and driving operating efficiencies to reinvest in growth. We are improving the fundamentals of our business, strengthening eBay Marketplaces and aggressively growing PayPal to become the leader in global online payments."