eBay Slips as Revenue Falls Short

NEW YORK ( TheStreet) -- Shares of eBay ( EBAY) were falling 2.44% to $54.73 after the e-commerce giant posted results that missed expectations handily.

The San Jose, Calif.-based firm earned 63 cents a share on $3.7 billion in revenue for the quarter ending March 31. Analysts polled by Thomson Reuters were expecting earnings of 62 cents a share on $3.76 billion in revenue. Analysts surveyed by Estimize were looking for 63 cents a share on $3.78 billion in revenue.

"We had a strong first quarter, with accelerating user growth across both Marketplaces and PayPal," said John Donahoe, eBay's CEO. "Technology is creating a commerce revolution, and we are in the forefront with strong mobile leadership and a focus on helping retailers and brands engage consumers anytime, anywhere."

The company's PayPal business saw strong revenue growth, up 18% year over year to $1.5 billion. PayPal added another 5 million registered accounts to end the quarter with 128 million, as net total payment volume (TPV) grew 21% to $41 billion.

For the second quarter, eBay said it expects earnings between 61 cents and 63 cents a share. Sales are expected to be between $3.8 billion and $3.9 billion. Analysts polled by Thomson Reuters are looking for 66 cents a share on $3.95 billion. For the full year, eBay expects revenue to be between $16 billion and $16.5 billion, with earnings between $2.70 a share and $2.75 a share. Wall Street consensus is at $16.38 billion and earnings of $2.74 a share

Shares of eBay fell during the regular trading session, closing down 1.6% to $56.10.

The company will hold a conference call at 5 PM ET to discuss the results.

-- Written by Chris Ciaccia in New York

>Contact by Email.

If you liked this article you might like

7 Essential Rules for Investing in Tech Stocks

10 States Where the Wealthiest Executives Call Home

Sorry Elon Musk but Artificial Intelligence Grows Jobs: Domino's Pizza CEO