This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

EBay Grows 1Q Earnings But Outlook Falls Short

By BARBARA ORTUTAY

NEW YORK (AP) â¿¿ EBay's high-flying stock price declined in after-hours trading Wednesday after the e-commerce bellwether's outlook for the current quarter fell below Wall Street's expectations.

The company grew its earnings and revenue in the first quarter, as shoppers continued to flock to eBay.com and other sites and mobile apps, to buy everything from cars to handbags to wedding rings. EBay's payments unit, PayPal, continued its fast-paced growth and expansion beyond the Web. People can now use their PayPal accounts to make purchases in some brick-and-mortar stores. Nonetheless, eBay's revenue, along with its guidance for the current quarter, fell shy of Wall Street's expectations â¿¿ though its full-year guidance stayed unchanged.

The San Jose, Calif.-based company's stock dropped by $1.60, or 2.9 percent, to $54.50 in after-hours trading. The stock closed down 91 cents at $56.10 in the regular session amid a broad market decline. That is up 10 percent since the start of the year and more than 55 percent from a year ago.

EBay's 2013 earnings forecast surpassed and revenue outlook met Wall Street's expectations, indicating that the second half of the year could be stronger than the first. EBay also recently issued an upbeat long-term forecast, saying it expects revenue to hit as much as $23.5 billion in 2015, up from 67 percent from $14.1 billion in 2012.

President and CEO John Donahoe said he wouldn't call eBay's second-quarter guidance cautious, adding that it's "highly consistent with what we thought."

"Expectations got a bit ahead of themselves," Donahoe said in a phone interview.

The company's business in Europe was "modestly softer" than expected amid the economic uncertainty there, Donahoe said, while the U.S. was slightly stronger than expected.

EBay said revenue at PayPal grew 18 percent to $1.55 billion and ended the quarter with 128 million registered accounts, up 16 percent from a year earlier. Its marketplaces unit, which includes eBay.com, grew revenue by 13 percent to $1.96 billion and ended the quarter with 116 million active users, an increase of 13 percent.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs