eBay exceeds earnings expectations, issues optimistic guidance
Prykhodov

Shares of eBay (NASDAQ:EBAY) gained in Wednesdayâs after hours trading after the company posted better-than-expected Q2 earnings and optimistic forecast for the third quarter.

The California-based eCommerce company notched $0.99 in EPS for the reported quarter alongside $2.42B in revenue, both of which rose above expectations. While sales declined 9.4% over the year, the figure ticked in above estimates that analysts had repeatedly revised down.

"Our focus category strategy is working, and payments and advertising are driving further growth,â CEO Jamie Iannone said. âeBay is in a stronger position today than it was when we entered the pandemic. Despite rising inflation, and an uncertain macro environment, we remain on track to deliver on our 2022 commitments."

Based on that bullishness despite the well-known headwinds confronting the eCommerce industry, the company set strong guidance figures that offered upside to the analyst consensus. Revenue for the current quarter is expected to fall in a range of $2.29 to $2.37B versus a consensus of $2.3B. Meanwhile, an adjusted EPS forecast of $0.89 to $0.95 came in line with a consensus of $0.92. For the full year, a forecast of $9.6 to $9.9B in revenue and adjusted EPS between $3.95 and $4.10 exceeded expectations more notably. Wall Street had anticipated $9.66B in revenue and $3.96 in earnings per share for the full year.

To be sure, active buyers once again declined, falling to 138M from 156M in the prior year. Active buyers have declined sequentially in each of the past 4 quarters. Additionally, gross margins contracted by 570 basis points on a GAAP basis in the second quarter. 
Shares rose 2.12% shortly after the results crossed newswires.
Read more on the key details of the earnings result.