This Day On The Street
Continue to site
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

eBay Drops on Weak Guidance

NEW YORK ( TheStreet) -- eBay (EBAY - Get Report) shares fell 4.6% to $51.06 in after-hours trading after the company posted earnings that missed Wall Street expectations.

The San Jose based e-commerce giant posted third-quarter earnings of 64 cents a share on $3.89 billion in revenue. Analysts surveyed by Thomson Reuters were looking for the company to earn 63 cents a share on $3.9 billion in sales.

The company noted Enabled Commerce Volume (ECV) grew 21% for the quarter, to $52 billion. Marketplaces saw a year-over-year revenue increase of 12% to $2 billion, adding 3.9 million active users during the quarter, ending the time frame with 124 million users.  Gross merchandise volume rose 13% to $18 billion.

PayPal, which has come under attack from upstarts like Square, saw a healthy 19% increase in revenue to $1.6 billion during the quarter.  The payments platform ended the quarter with 137 million accounts, up 5 million sequentially, and 17% year over year. Net total payment volume grew 25% to $44 billion.

Mobile commerce volume was exceptionally strong during the quarter, up 75% year-over-year, with downloads now exceeding 200 million. The company's mobile apps added 3.2 million new customers.

"We delivered strong third quarter results, with mobile driving a significant portion of our new user growth and continuing to transform how consumers shop and pay around the world," said John Donahoe, President and CEO, eBay in the press release. "Our scale and experience, the strength of our global commerce platforms, our technology assets and our mobile commerce capabilities strongly position us to be a leader in the commerce revolution under way. In the past 12 months we have enabled $200 billion of commerce volume, a 20 percent increase in a fairly lackluster macro environment. That growth demonstrates the strength of our core businesses and our power as a partner, not a competitor, to merchants, brands and retailers."

For the fourth-quarter, eBay expects to earn between 79 cents and 81 cents per share, with sales between $4.5 billion and $4.6 billion.  Analysts surveyed expect eBay to earn 83 cents per share on $4.64 billion in revenue.

Shares of eBay closed the regular session higher, gaining 0.83% to finish at $53.52.

Written by Chris Ciaccia.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
EBAY $61.66 -0.31%
AAPL $125.56 -0.70%
FB $87.23 -0.06%
GOOG $522.49 -0.17%
TSLA $278.50 -0.54%

Markets

DOW 17,638.35 -91.76 -0.52%
S&P 500 2,064.57 -12.21 -0.59%
NASDAQ 4,978.1840 -31.03 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs