posted on October 18, 2001 02:49:59 PM new
I wonder how much of this is AFA money.
PALO ALTO, Calif. (Reuters) - The Internet auction site eBay Inc. (Nasdaq:EBAY - news) on Thursday reported higher third- quarter sales and earnings and increased guidance for the fourth quarter, saying business remained strong through the economic downturn.
Still, eBay which has thus far avoided the slump seen by many retailers, it said it was concerned about the impact of the weak economy and political turmoil on the upcoming Christmas season.
The company reported third-quarter net income of $18.8 million, or seven cents per share, compared with a profit of $15.2 million, or five cents per share, in the year-ago period.
On an operating basis, excluding unusual costs, the San Jose, California-based company reported earnings of $34.9 million, or 12 cents per share.
Those earnings came in a penny above the forecasts of most analysts, who had been expecting a profit of 11 cents per share, according to research firm Thomson Financial/First Call.
Revenues rose to $194.4 million from $113.4 million.
The company said it was increasing its revenue forecasts for the fourth quarter to between $200 million and $210 million, about $5 million higher than it earlier forecast. It increased its fourth quarter net income forecast to 11 cents to 12 cents per share, about two cents higher than an earlier forecast.
eBay shares, which had closed the regular trading session up $1.97 at $59.06 per share, were talked around $57.60 in after market activity, following the release of earnings.
``Business is good, but it would have been better,'' eBay Chief Financial Officer Rajiv Dutta said in an interview, referring to the effect of the Sept. 11 terror attacks and the impact they have had on the overall economy. ``We are concerned with what is going to be happening in the U.S. in the holiday shopping season. It doesn't appear to be as strong as it had been.''
