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eBay sinks as subdued outlook overshadows in-line 1Q revenue and profit

The ecommerce giant posted adjusted earnings of US$0.53 on revenue of US$2.6bn which was largely in-line with expectations, but it was slightly more cautious with its second-quarter sales outlook

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eBay grew active buyers by 4% in the quarter

eBay Inc (NASDAQ:EBAY) tumbled before the bell on Thursday after the online shopping giant’s in-line first-quarter results were overshadowed by a somewhat downbeat outlook.

The California-based group delivered revenue of US$2.6bn in the opening three months of 2018 - up 12% versus the year-ago period, its best growth for more than four years.

READ: Earnings release in full

Net income fell to US$407mln, or US$0.40 a share, from US$1.04bn, or US$0.94 a share, in the first quarter of 2017. Excluding one-off items, eBay reported adjusted earnings per share of US$0.53.

Analysts had expected adjusted earnings of US$0.53 on revenue of US$2.6bn.

eBay, which is still trying to prove that it can remain relevant in an ecommerce market dominated by Amazon.com Inc (NASDAQ:AMZN), disappointed some investors with its outlook though.

The StubHub owner said it expects second-quarter adjusted EPS of 52 US cents, in-line with forecasts, on revenue of between US$2.64 and US$2.68bn. Wall Street had been looking for 2Q revenue of US$2.68bn.

“In Q1 we drove good growth and made further progress with our multi-year effort to transform our customer experience and sharpen the eBay brand,” said Devin Wenig, President and Chief Executive.

Shares were down 5.6% to US$40.97 before the opening bell in New York.

Quick facts: eBay Inc

Price: 38.82 USD

NASDAQ:EBAY
Market: NASDAQ
Market Cap: $32.56 billion
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