EBay Inc (EBAY) Q3 Adjusted Earnings in Line With Expectations


It sees revenue in the range of $2.58 billion to $2.62 billion, with the midpoint slightly ahead of the midpoint of the consensus $2.58 billion estimate. (EBAY) on Wednesday reported third-quarter profit of $523 million.

Shares fell more than 4% in post-earnings trading.

The San Jose, California-based company said it had profit of 48 cents per share. The figure was a 9% improvement compared to the year-ago period.

"In Q3, we drove acceleration across all three of our platforms, delivering strong top and bottom line financial results and our fastest volume growth in over three years", said eBay CEO Devin Wenig.

The online marketplace is making a big push to catch up to Amazon.com Inc with three-day guaranteed delivery and a more user-friendly website, hoping to distinguish itself as a haven for specialty items rather than commodity products.

Elsewhere on the balance sheet, eBay's ticket marketplace subsidiary StubHub delivered revenue of $275 million, up 5 percent.

Analysts polled by Thomson Reuters were looking for earnings of 48 cents a share on $2.37 billion in revenue. Classifieds growth accelerated during the third quarter as sales grew 19% on a reported basis and 13% on a currency-neutral basis to $235 million.

EBay reported almost 2 million more active buyers in the third quarter to reach 168 million, excluding customers in India.

The company also bought back $907 million of its common stock during the third quarter and generated $877 million in operating cash flow and $720 million in free cash flow from continuing operations.

eBay forecast fourth-quarter adjusted profit of between $0.57 and $0.59 cents a share, missing the Wall Street consensus of $0.59.

For the current quarter eBay said it expects net revenue between $2.58 billion and $2.62 billion and adjusted profit between 57 cents to 59 cents per share.