eBay Takes a Tumble - TheStreet

eBay Takes a Tumble

Shares of the online auction firm slide in extended trading after the company's outlook fails to inspire.
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SAN FRANCISCO -

eBay

(EBAY) - Get Report

edged out estimates for second-quarter earnings, but the company's third-quarter forecast didn't impress, and the auction giant struggled to show meaningful growth in the total value of items sold on its site.

Shares of eBay were off more than 5% in recent after-hours trading to $26.60.

eBay posted second-quarter earnings of $460 million, or 35 cents a share, up from $376 million, or 27 cents a share, a year ago.

Excluding items, the company earned $568 million, or 43 cents a share. On that basis, analysts surveyed by Thomson Reuters had predicted earnings of 41 cents.

Second-quarter revenue was up $2.2 billion from $1.83 billion a year ago. Analysts were expecting revenue of $2.17 billion.

Despite the beat, eBay was not able to stop the slide in its gross merchandise volume, which represents the total value of all successfully closed listings between users on eBay's online trading platforms. In the second quarter, GMV totaled $15.68 billion, an increase of 8% over the same period last year but a drop from 12% in the first quarter.

"This was a strong quarter and we are very pleased with the performance of the portfolio, particularly with the growth generated by PayPal," said eBay Chief John Donahoe. "We have made bold moves across the eBay marketplace to accelerate long-term growth. We remain confident in our strategies to improve the customer experience as we manage in an uncertain economic climate."

For the third quarter, eBay said it expected to earn 39 cents to 41 cents a share before items on revenue of $2.1 billion to $2.15 billion.

Analysts had expected third-quarter earnings of 41 cents on revenue of $2.18 billion.