EBay stock sinks after the company gives disappointing guidance
Shares of eBay slid as much as 11% in extended trading Wednesday after the online marketplace posted its fourth-quarter earnings and gave guidance for the first quarter that fell short of Wall Street’s expectations.
Here’s how the company did versus Refinitiv consensus expectations for the quarter:
- EPS: $1.05 per share ex-items, versus 99 cents expected
- Revenue: $2.61 billion, versus $2.61 billion expected.
EBay predicted first-quarter revenue would come in between $2.43 billion and $2.48 billion, representing a decline of 7% to 5% year over year, while analysts had on average expected revenue of $2.61 billion, according to FactSet.
The company said it expects $1.01 to $1.05 in adjusted earnings per share in the first quarter, which was below consensus estimates of $1.08 per share, according to FactSet.
The disappointing guidance overshadowed eBay’s better-than-expected earnings for the fourth quarter. The company posted earnings per share of $1.05, adjusted. Analysts polled by Refinitiv had expected 99 cents per share.
Revenue was $2.61 billion, in line with Wall Street’s estimates.
Annual active buyers declined 9% during the quarter to 147 million, well short of the 156 million active buyers forecast by analysts, according to FactSet. Annual active sellers also slid 8% to 17 million.
WATCH: Because of scarcity, people have been turning to eBay, says CEO Jamie Iannone
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