EBay Shares Fall on 3Q Results, Outlook
October 24 2019 - 11:02AM
Dow Jones News
By Dave Sebastian
EBay Inc. (EBAY) shares fell Thursday, a day after the online
marketplace reported a lower profit and predicted its first
quarterly revenue decline in four years.
EBay is working through a strategic review that prompted a
leadership shake-up and could reshape its overall business. Shares
of eBay dropped 8.4% to $35.91 Thursday morning.
For the third quarter, eBay posted $310 million, 57% lower than
the same quarter last year. Adjusted earnings rose to 67 cents a
share from 56 cents a share a year earlier.
Revenue remained flat at $2.65 billion but would have increased
2% excluding the impact of currency fluctuations.
The company lowered its forecast for the December quarter, which
is typically bolstered by the holiday shopping season. EBay said it
expects to earn a profit of $1.97 to $2.02 a share on $10.75
billion to $10.80 billion in revenue, compared with its previous
guidance of $1.97 to $2.07 a share in profit on $10.75 billion to
$10.83 billion in revenue.
Analysts lowered the company's price targets Thursday, with some
citing the U.S. internet sales tax weighing on results and softer
demand in concerts and theater within its StubHub ticketing
business, which Elliott Management Corp. and Starboard Value LP are
pressuring to get rid of. Analysts also called for the growth of
gross merchandise value, which was down 4% for the quarter.
JPMorgan cut eBay's price target to $40 from $42. Wedbush
slashed it to $36 from $38, while Bank of America trimmed it to $42
from $45.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
October 24, 2019 10:47 ET (14:47 GMT)
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