Online marketplace eBay reported second-quarter results amidst its much-hyped summer sale that coincided with Amazon’s (AMZN) Prime Day event. Earnings surged and came in above Wall Street forecast as both the major business divisions delivered strong performance. However, weak revenue guidance dragged the stock in the extended session, following the earnings report.
In the second quarter, adjusted earnings from continuing operations jumped 18% to $0.53 per share, exceeding analysts’ estimates. Reported net income was $638 million or $0.64 per share, compared to $29 million or $0.03 per share last year. Revenues advanced 9% to $2.6 billion, aided by a broad-based uptick in the performance of the business segments.
eBay raised its global user base by 4% to 175 million in the second quarter. At $23.6 billion, gross merchandise volume was up 10% compared to last year.
The company, meanwhile, issued third-quarter and full-year guidance below analysts’ estimates. Revenue is estimated to be between $2.64 billion and $2.69 billion in the next quarter. GAAP earnings and adjusted earnings are expected to be in the range of $0.37 – $0.41 per share and $0.54 – $0.56 per share respectively.
Revenues advanced 9% aided by a broad-based uptick in the performance of business segments
For the whole of fiscal 2018, eBay is looking for earnings in the range of $1.91 per share to $2.01 per share on revenues of $10.75 – $10.85 billion. Full-year adjusted income is expected to be between $2.28 per share and $2.32 per share.
During the quarter, the company expanded its footprint in the Japanese market by acquiring the local arm of online shopping platform Giosis. It also repurchased around 26 million shares for $1 billion. Looking ahead, eBay is planning to divest its stake in India-based e-commerce firm Flipkart and re-launch its own Indian operations. The sale is expected to generate gross proceeds of about $1.1 billion.
eBay shares, which witnessed significant volatility this year, jumped to a record high in February, but pared the gains in the following months. The stock ended Wednesday’s trading session slightly higher, but lost more than 5% in after-hours trading.