EBay Inc.'s stock experienced a 4% slide in extended trading on Tuesday following the release of their quarterly results. While the online marketplace's performance aligned with analysts' estimates, concerns over declining margins and weak revenue guidance affected investor confidence.
Revenue Falls Short of Estimates
EBay's fourth-quarter revenue guidance ranged from $2.47 billion to $2.53 billion, which fell below analysts' estimates. The company attributed this in part to increasing competition from key players such as Amazon.com Inc. FactSet analysts had projected revenue of $2.6 billion.
Q3 Performance Overview
For the just-completed quarter, eBay reported fiscal third-quarter net income of $545 million, which translates to $1.03 per share. This is slightly lower compared to the net income of $552 million, or $1 per share, in the year-ago quarter. Despite the decrease in net income, net revenue saw an increase, reaching $2.5 billion compared to $2.38 billion last year.
Analyst Expectations Met
Net earnings of $1 per share on revenue of $2.5 billion were anticipated by analysts surveyed by FactSet, and eBay managed to meet these expectations.
Efforts to Reinvent E-commerce
Amidst macroeconomic uncertainty, eBay's CEO Jamie Iannone expressed determination to pursue their ambitious vision of reinventing the future of e-commerce for enthusiasts. He made this statement while announcing the quarterly results.
Stock Performance
Shares of eBay have experienced a slight decline of 1.7% year-to-date. In comparison, the broader S&P 500 index has witnessed a significant increase of 14%.
