eBay Expects Annual Revenue to Top Street Forecasts Despite Weak Profit Outlook
GeokHub
Contributing Writer
eBay has projected that its full-year revenue will come in between $10.97 billion and $11.03 billion, surpassing analysts’ prior estimates of around $10.85 billion. The upbeat revenue outlook follows a strong third quarter, though the company’s guidance for holiday-season profits fell short of expectations, prompting a decline in its stock price.
In the quarter ending September, eBay reported revenue of $2.82 billion, with adjusted earnings of $1.36 per share, both comfortably ahead of consensus forecasts of $2.73 billion in revenue and $1.33 per share in profits. The results reflected continued strength in its marketplace operations, particularly in categories like collectibles and used goods.
For the fourth quarter, eBay anticipates revenue in the range of $2.83 billion to $2.89 billion, again exceeding analysts’ estimate of about $2.79 billion. However, its projected adjusted earnings of $1.31 to $1.36 per share underscore tightened margin expectations in a seasonally important period for e-commerce.
Though the revenue outlook impressed the market, the softer profit guidance led to eBay shares slipping nearly 6 % after hours. Investors signaled caution—rewarding growth but penalizing any signs of margin erosion.
Analysts noted that eBay’s performance remains dependent on volatile product verticals such as collectibles and refurbished goods, making forecasting more challenging. Tariffs, shifting consumer sentiment, and changes in customs rules could also disrupt cross-border trade and logistics costs, adding pressure to gains.
