eBay Shares Tumble On Poor Guidance
Shares of eBay Inc (NASDAQ: EBAY) traded down about 7.6 percent in Wednesday’s after-hours session, following the announcement of the company’s Q3 results.
Earnings of $0.45 per share and revenue of $2.22 billion (up 5.7 percent year-over-year) beat the Street’s consensus by $0.01 and $30 million, respectively. Guidance for the fourth quarter, usually strong, disappointed investors.
Management said it expects Q4 sales of $2.36 billion to $2.41 billion and EPS of $0.52 to $0.54, while the Street was expecting $2.4 billion in sales and $0.54 in EPS.
For the full year, the eBay guided for EPS of $1.85 to $1.90, mostly below expectations for $1.89, and sales of $8.95 billion to $9 billion, versus consensus at $8.95 billion.
President and CEO Devin Wenig said, “In Q3 we delivered good top- and bottom-line financial results, led by consistent performance across our business… We continued to transform the shopping experience on eBay, delivered more personalization capabilities and began to activate our updated brand messaging.”
Shares traded recently at $30.52, down 6.2 percent.
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