eBay falls despite Q2 beat as investors focus on forecast
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eBay (NASDAQ:EBAY) fell 4.5% after the close on Wednesday, despite second-quarter results that beat expectations. The company issued uninspiring predictions for the third quarter.
The company forecast third-quarter revenue between $2.46 billion and $2.52 billion, versus the average estimate of $2.47 billion. Meanwhile, the firm projected third-quarter earnings of $0.96 to $1.01 per share.
The online retailer reported $2.54B in revenue for the second quarter versus the average analyst estimate of $2.5B, and compared to the guidance of $2.47B to $2.54. EPS of $1.03 compared to the non-GAAP EPS estimate of $0.99/GAAP EPS estimate of $0.70.
Earlier this year, the company guided GAAP EPS of $0.65 to $0.70 and non-GAAP EPS of $0.96 to $1.01.
Gross merchandise volume, or GMV, of $18.2B versus the estimate $18.04B. Active buyers estimated 132.9M compared to the reported 131M.
"In Q2, we exceeded expectations on all key metrics while investing in sustainable growth," Chief Executive Officer Jamie Iannone said in a statement.
In July, a Sensor Tower report showed that in June, eBay (EBAY) downloads were down 8% year-over-year and DAUs were down 4% year-over-year.
Earlier this month, EBAY completed its acquisition of Certilogo, a provider of AI-powered apparel and fashion goods digital IDs and authentication. The deal is seen as marking a key investment in the growing pre-loved fashion category.
For the first quarter, the online company reported gross merchandising volume down 5% year-over-year to $18.4B vs. the guidance range of $18.0B to $18.3B.
EBAY has five Strong Buy ratings from Wall Street analysts, four Buys, 20 Holds, one Sell and two Strong Sells.
Shares are up nearly 15% for 2023.
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