Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

EBay forecasts revenue below estimates as shoppers venture out

Stock Markets Aug 11, 2021 06:11PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: An eBay sign at an office building in San Jose, California, May 28, 2014. REUTERS/Beck Diefenbach/File Photo
 
AMZN
-8.43%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
WMT
-1.33%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

(Reuters) -EBay Inc on Wednesday forecast current quarter revenue below analysts' estimates, signaling that reopening economies and vaccine rollouts could be putting an end to the pandemic-led shopping boom.

In the past year, customers turned to e-commerce platforms during the coronavirus pandemic as they were home-bound for months at a stretch, but vaccine rollouts are expected to lead a return to brick-and-mortar shopping as more people step out of their homes.

EBay said it expects third-quarter revenue in the range of $2.42 billion to $2.47 billion, while analysts were expecting $2.92 billion, according to IBES data from Refinitiv.

Shares of the e-commerce firm fell 1% after the bell.

Jamie Iannone, eBay (NASDAQ:EBAY)'s chief executive, said an increase in people on the move in the spring had impacted sales, but the company's playbook in areas such as collectibles, ads and payments was working.

"We feel like we're coming out of the pandemic stronger than we came into it," he said in an interview.

He said that excluding eBay's deal to sell 80% of its Korea business to Shinsegae Group's E-Mart Inc, the company met or exceeded forecasts.

Last month, Amazon.com Inc (NASDAQ:AMZN)'s second-quarter revenue missed analysts' estimates, and the company hinted at slower sales growth in the e-commerce sphere.

EBay said its second-quarter revenue rose about 14% to $2.68 billion, its slowest growth in four quarters. Analysts expected sales of $3.00 billion.

The company's gross merchandise volume (GMV), which is the value of goods sold on its websites within a certain time frame, fell 7% to $22.1 billion.

The company expects to see an additional drop in active buyers on a rolling 12-month basis, but an increase in GMV per buyer in the coming quarters, Chief Financial Officer Stephen Priest said on a post-earnings call.

On an adjusted basis, the company earned 99 cents per share, above analysts' estimate of 95 cents.

EBay has also expanded its share buyback program by $3 billion.

EBay forecasts revenue below estimates as shoppers venture out
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email