eBay Inc (NASDAQ: EBAY) is in the red in extended hours today even though it came in ahead of Street estimates for its fiscal Q1.
eBay stock down on muted guidance
The stock is taking a hit primarily because the management failed to impress with its guidance. $EBAY now forecasts its revenue to fall between $2.49 billion and $2.54 billion on up to $1.15 of per-share earnings.
Analysts, in comparison, were at $2.56 billion and $1.14, respectively. Jamie Iannone – the chief executive of eBay Inc said in a press release today:
Our accelerating pace of innovation is fundamentally changing the selling and buying experience on eBay … and driving more value for shareholders.
The eCommerce giant returned $638 million to its shareholders in its recently concluded quarter in the form of dividend payments and stock buybacks. eBay stock is up close to 20% versus its year-to-date low at writing.
Watch here: https://www.youtube.com/embed/A5nucaU06Pw?feature=oembed
eBay Q1 earnings snapshot
- Earned $439 million versus the year-ago $569 million
- Per-share earnings also declined from $1.05 to 85 cents
- Adjusted EPS printed at $1.25 as per the earnings report
- Revenue inched up 2.0% year-over-year to $2.56 billion
- Consensus was $1.20 a share on $2.53 billion in revenue
eBay noted a 1.0% annualised growth in its gross merchandise volume to $18.6 billion in Q1. CEO Iannone also said on Wednesday:
eBay’s Q1 results marked a strong start to 2024 as we continue to make progress toward our goal of sustainable GMV growth.
Wall Street currently has a consensus “hold” rating on eBay stock.
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