Markets PaPer

EBay Reports Drop in Revenue, Downbeat Forecast

Shares of eBay Inc.  fell in after-hours trading Tuesday after the online auction and ticketing company posted a 2% drop in revenue and adjusted earnings that topped analyst estimates, but offered a downbeat forecast for the current quarter.

The company said it expects revenue between $2.55 billion and $2.6 billion in the current quarter, vs. analyst expectations of $2.6 billion. Non-GAAP earnings per diluted share are forecast to be between 70 cents and 73 cents a share. Analysts surveyed by FactSet were looking for 71 cents.

Shares fell $1.58, or 4%, to $34.63 in after-hours trading.

The company said non-GAAP earnings per diluted share came in at 81 cents in the fourth quarter. Analysts had been looking for 76 cents.

EBay also offered full-year guidance for net revenue between $10.72 billion and $10.92 billion, and non-GAAP earnings per share of $2.95 to $3.05. The guidance assumes the company’s current portfolio of businesses is in place for the full year, including StubHub. Last month, eBay announced it is selling the online ticket marketplace to Viagogo for $4.05 billion. The transaction is expected to close by the end of the first quarter.

EBay’s board declared a dividend of 16 cents a share, payable March 20 to stockholders of record as of March 2.

Leave A Reply

Your email address will not be published.