eBay forecasts for fourth quarter fail to impress
EBAY yesterday forecast fourth-quarter profit and revenue at the low end of analysts’ estimates, disappointing investors’ hopes of a substantial turnaround at its main marketplaces division during the crucial holiday season.
The global e-commerce site, which also owns online payments service PayPal and Web telephone company Skype, said net profit in its third quarter was $350m (£211m), or 27 cents per share, from $492m, or 38 cents per share, a year earlier.
“Certainly the fourth quarter earnings guidance is light,” said analyst Colin Gillis of Brigantine Advisors. “This is a turnaround play in the early stages.”
On an adjusted basis, earnings were 38 cents per share, a penny above the average analyst forecast, according to Thomson Reuters.
Revenue was $2.2bn, the company said, compared to the Wall Street expectation of $2.14bn.
Investors have been looking for confirmation that eBay has turned around its long-struggling marketplaces business.