Shares of eBay took a hit in late trading on Wednesday as the company’s better-than-expected results failed to sustain this year’s rally.
Strong June Quarter Results
eBay reported non-GAAP earnings of $1.03 per share for the June quarter, surpassing analyst expectations of 99 cents per share. Sales reached $2.54 billion, a 5% increase compared to the previous year, slightly exceeding estimates of $2.51 billion.
Gross merchandise volume (GMV) dropped by 2% to $18.2 billion, but still outperformed expectations of $18.06 billion.
Confidence Despite Uncertainty
Despite ongoing macroeconomic uncertainty, Chief Financial Officer Steve Priest expressed his pride in the team’s ability to exceed expectations. “Our GMV, revenue, and EPS came in above expectations, showcasing our continued focus and execution on our long-term objectives and strategy,” said Priest.
Shares Suffer
eBay shares experienced a 4.5% drop in after-hours trading following the announcement. Despite this setback, shares have demonstrated a strong performance so far this year, rallying by 18%.
Q3 Expectations
For the third quarter, eBay anticipates revenue between $2.46 billion and $2.52 billion, with analyst expectations at $2.47 billion. The company expects non-GAAP earnings to fall between 96 cents and $1.10 per share, compared to expectations of $1.02 per share.