EBay Beats Estimates, Rallies With Top End of Profit Forecast

tech.hindustantimes.com:

EBay Inc. reported robust third-quarter earnings, evidence that the online marketplace's shift to luxury items and refurbished goods could help temper declining sales.

The shares rose as much as 10% in extended trading.

EBay revenue decreased 5% to $2.4 billion in the period ended Sept. 30. Analysts, on average, estimated $2.32 billion. Earnings, excluding some items, were $1 per share, beating estimates of 93 cents.

Chief Executive Officer Jamie Iannone has turned to higher-priced products such as watches and brand-name sneakers to try to boost spending on the marketplace and lure more shoppers. He's also trying to make EBay the go-to place for refurbished used goods to appeal to cost-conscious shoppers adjusting to inflation. On Monday, the company announced completion of its $295 million acquisition of collectible card game marketplace TCGplayer.

Sales will be $2.42 billion to $2.5 billion in the period ending in December, the San Jose, California-based company said Wednesday in a statement. Analysts, on average, projected $2.5 billion, according to data compiled by Bloomberg. Earnings, excluding some items, will be $1.03 to $1.09 a share, in line with the average estimates of $1.07.

Last week, Amazon. com Inc. forecast its slowest ever holiday-quarter growth, sending the shares down 11% the next day.

EBay shares rose as high as $41.84 in extended trading after closing at $38.06 in New York. The stock has fallen about 40% so far this year, in line with a broader market drop.

EBay ended the quarter with 135 million active buyers, down 11% from a year earlier. Gross merchandise volume, which is the value of all goods sold on the site, fell 11% to $17.7 billion. The declines in both metrics slowed from the previous quarter.