NEW YORK, Oct 29 ― E-commerce company eBay Inc yesterday forecast holiday-quarter sales above estimates and topped Wall Street profit expectations, as people staying at home due to the Covid-19 pandemic took to online shopping.
Shares of the company, however, fell 5 per cent in extended trade, after it said active buyers rose by just 1 million to 183 million in the third quarter compared to the prior quarter.
“These metrics (active buyers) are likely raising concerns regarding what growth might look like once the Covid-related tailwinds for the business ease,” Atlantic Equities analyst James Cordwell said.
Still, eBay said it expects fourth-quarter revenue in the range of US$2.64 billion (RM11 billion) to US$2.71 billion, above analysts' estimate of US$2.54 billion, according to IBES data from Refinitiv.
“We continue to operate in an environment with low visibility...The dynamics we faced in Q3 were different from what we faced in Q2, and it's clear that Q4 will be different,” eBay's interim chief financial officer, Andy Cring, said on a conference call with analysts.
E-commerce firms and retailers with a strong online presence, including eBay and bigger rivals Amazon.com Inc and Walmart Inc, have witnessed a spike in orders, with less brick-and-mortar shopping due to restrictions related to the coronavirus crisis.
EBay also raised its full-year sales outlook to between US$10.04 billion and US$10.11 billion. The forecast excludes the classifieds business, which eBay in July agreed to sell to Norway's Adevinta in a US$9.2 billion deal.
Net income from continuing operations nearly tripled to US$621 million, for the third quarter ended September 30.
Excluding items, eBay earned 85 cents per share, above estimates of 77 cents per share.
Revenue rose about 25 per cent to US$2.61 billion, beating analysts' average estimate of US$2.48 billion. ― Reuters
