By
Bloomberg
Published
October 30, 2024
EBay Inc. dropped in extended trading after projecting holiday season sales that fell short of analysts’ estimates, suggesting the e-commerce company continues to struggle against larger rivals.
Revenue will be $2.53 billion to $2.59 billion in the period ending in December, the company said Wednesday in a statement. Profit, excluding some items, will be as much as $1.22 a share. Analysts, on average, estimated sales of $2.64 billion and earnings of $1.23 a share, according to data compiled by Bloomberg.
In an effort to stem its eroding market share, eBay has been focusing on narrow categories such as car parts, luxury goods, collectibles and refurbished appliances. The San Jose, California-based company is investing in authentication services to appeal to luxury shoppers wary of online fakes and offers guarantees on car parts and refurbished goods to reassure those focused on thrift. Bill Nash, chief executive officer of used car retailer CarMax, was added to the board of directors in September.
EBay’s efforts this year had found favor with investors before Wednesday’s results. The stock had gained 44% in 2024 to $62.63 at the close. The shares declined about 10% in extended trading after the results.
In the third quarter, revenue increased 3% to $2.58 billion, while adjusted profit was $1.19 a share. Analysts, on average, estimated sales of $2.55 billion and earnings of $1.18 a share.
Gross merchandise volume, the value of all goods sold on eBay, increased 2% to $18.3 billion during the quarter, beating the average estimate of $18.1 billion.
