Thursday, October 20, 2016
EBay is getting crushed after announcing weak guidance for earnings in the fourth quarter
EBay shares slid 10% in early trading on Thursday after the company reported earnings with weaker than expected guidance for the fourth quarter.
The ecommerce company said Thursday it expects adjusted earnings per share from continuing operations to be in a range of $0.52 to $0.54 for the crucial holiday season. That was near the low end of analysts' forecast for $0.54, according to Bloomberg.
Also, gross merchandise volume (GMV) — a key measure of the dollar value of everything sold on eBay — slightly trailed analysts' forecasts. Third-quarter GMV totaled $20.1 billion, representing 5% growth from the same quarter in the previous year when the impact of foreign-currency fluctuation is excluded, but less than the $20.3 billion that was expected.
The online retailer's net revenue totaled $2.22 billion versus $2.19 forecast. Adjusted earnings per share (EPS) from continuing operations was $0.45, one cent more than the median forecast.
EBay shares had gained 18% this year through the close of trading on Wednesday.
The company said it added more than one million new buyers in the third quarter, bringing the total to 165 million global active buyers. Revenue at StubHub, the marketplace for event tickets, rose 32% to $263 million.