eBay Slumps as Guidance Disappoints

Author:
Publish date:

eBay (EBAY) - Get Report was down 7.3% in preopen Instinet trading, a day after it met Wall Street estimates and raised its guidance slightly.

Analysts seemed to be disappointed. Lehman Brothers' Holly Becker said the quarter was "very strong," and growth was "solid." "However, there was not enough good news to move the stock higher," she said in a note.

For the third quarter, eBay reported earnings of 12 cents a share, excluding certain items, up from 5 cents a year ago and 1 cent better than expectations. Revenue jumped to $194.4 million from $113.4 million in the year-ago period. The consensus estimate was $188.6 million, according to Thomson Financial/First Call.

At the same time, the company raised its financial guidance for the fourth quarter, although the numbers it gave were in line with analysts' estimates. eBay said it expects revenue of $200 million to $210 million, $5 million more than its previous guidance, and earnings of 11 cents to 12 cents a share.