E-commerce company eBay Inc. (EBAY, Financial) reported its third-quarter results after the market closed on Oct. 18.
The California-based company posted earnings per share of 48 cents, which was in line with estimates. Quarterly revenue of $2.4 billion narrowly beat expectations of $2.37 billion and increased 9% from $2.22 billion in the prior-year quarter.
Despite the beat, shares slid more than 4% in after-hours trading after gaining 1.28% during the day.
The graph below illustrates the trend in eBay’s revenue growth over the past decade.
During the quarter, President and CEO David Wenig said the company “drove acceleration across all three of our platforms, delivering strong top and bottom line financial results and our fastest volume growth in over three years. Our customers are responding to the significant product enhancements we have been making, and this is reflected in our results."
The company reported gross merchandise volume (GMV) for the quarter increased 8% to $21.7 billion. Its Marketplace platforms contributed $20.5 billion in GMV, a 9% increase year over year, and $1.9 billion in sales. StubHub GMV grew 2% from the prior-year quarter to $1.2 billion, and sales climbed 5% to $275 million. The classifieds business’ sales grew 19% to $235 million.
In addition, the company recorded an increase of 2 million active buyers, bringing the total to 168 million globally. This was just shy of the expected 171 million buyers. This figure excludes domestic active buyers in India due to the sale of eBay’s India business to Flipkart in early August.
For the fourth quarter, the company expects revenue between $2.58 billion and $2.62 billion and adjusted EPS ranging from 57 cents to 59 cents. Analysts were forecasting a profit of 60 cents per share on revenue of $2.58 billion.
Revenue guidance for the full year is projected to be from $9.53 billion to $9.57 billion. Full-year adjusted EPS is expected to be between $1.99 and $2.01.
Among the 20 gurus invested in eBay, PRIMECAP Management (Trades, Portfolio) has the largest holding with 0.86% of outstanding shares. Other top guru shareholders include Larry Robbins (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), First Eagle Investment (Trades, Portfolio) and Jim Simons (Trades, Portfolio).
According to GuruFocus data, the stock has gained 28% year to date. It closed at $37.97 on Wednesday with a market cap of $40.62 billion.
Disclosure: I do not own any stocks mentioned.
