What am I bid for shares in eBay Inc? A lot less than I would have received before last night’s underwhelming trading update.
The shares were down 6% at US$35.70 in pre-market trading on Thursday after the online auction company disappointed with fourth quarter guidance.
For the third quarter eBay (NASDAQ:EBA) reported adjusted earnings per share of 48 cents on revenue of US$2.4bn, which was in line with market expectations but the fourth quarter guidance came up light.
The company said it expects to post revenue of between US$2.58bn and US$2.62bn in the fourth quarter, versus the median forecast among analysts covering the stock of US$2.58bn.
Earnings per share are expected to come in between 57 and 59 cents, compared to Wall Street’s expectations of 60 cents.
The value of goods sold on the eBay platform rose 7% (adjusted for currency fluctuations) from a year earlier to US$21.7bn.
The company added almost 2mln active users across its platform, and now lays claim to having 168mln active buyers worldwide.
"In Q3, we drove acceleration across all three of our platforms, delivering strong top and bottom line financial results and our fastest volume growth in over three years," said Devin Wenig, president and chief executive officer of eBay.
"Our customers are responding to the significant product enhancements we have been making, and this is reflected in our results," he claimed.