eBay (EBAY 34.40, -3.55) has given up over 7% in morning
trade after the company's results were overshadowed by disappointing revenue
guidance for the full year. The early weakness has pressured the stock to its
lowest level since the end of 2017.
The online auction site reported above-consensus second quarter earnings of $0.53 per share on a 9.1% year/year increase in revenue to $2.64 bln, which was just shy of estimates.
Going forward, eBay expects that second quarter earnings will be between $0.54/share and $0.56/share, which encompasses current market expectations. However, revenue is expected between $2.64 bln and $2.69 bln, which is shy of market estimates.
For the full year, eBay expects above-consensus earnings between $2.28/share and $2.32/share, but the company's guidance for revenue between $10.75 bln and $10.85 bln is below market expectations.
The company's StubHub unit reported its slowest revenue growth in a year, largely due to very weak attendance at Major League Baseball games. In addition, short NBA and NHL finals also contributed to soft revenue growth. The disappointing showing from StubHub was partly responsible for eBay's below-consensus revenue guidance with dollar strength expected to exacerbate the shortfall.
Looking at the segment breakdown, Marketplace net revenue grew 9.4% year/year to $1.84 bln. International sales made up 62% of total revenue, up from 61% of revenue one year ago.
StubHub net revenue increased 4.8% year/year to $240 mln. International revenue made up 10% of the total, up from 5% one year ago.
Marketplace services revenue increased 5.3% to $298 mln. International revenue made up 52% of the total, up from 51% one year ago.
Classifieds revenue grew 18.3% year/year to $259 mln.
Active buyer count increased 4.8% year/year to 175 mln. Gross merchandise volume in Marketplace increased 10.7% year/year to $22.57 bln while StubHub gross merchandise volume grew 5.1% to $1.06 bln.
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