posted on July 17, 2013 03:59:35 PM new
It wasn’t a good afternoon for tech companies, and eBay exemplified the rout. The global e-commerce and payments company hit profit estimates but missed on guidance, sending the stock tanking more than 6% in post-market trading.
eBay’s second quarter non-GAAP net income jumped 12.6% $822 million, or 63 cents in per share basis, just as Wall Street’s analysts expected. Revenue gained 14% to $3.877 billion, a hair below the $3.89 billion estimate.
Total company enabled commerce volume surged 21% to $51 billion, 22% or which came from cross-border trade. eBay is benefiting from the move to mobile, attracting 3 million new customers in the quarter.
PayPal remains one of the company’s best performing units, with revenue jumping 20% to $1.6 billion and net total payment volume gaining 24% to $43 billion. By quarter’s end, eBay boasted 132 million active PayPal accounts, up 17% from a year ago. Marketplaces revenue was up 10% to $2 billion, while gross merchandise volume gained 13% to $18 billion; active accounts increased 14% to 120 million. eBay enterprise, the recently renamed GSI Commerce unit, saw revenue gain 11% to $246 million.
“We had a strong second quarter, with $51 billion of enabled commerce volume across Marketplaces, PayPal and eBay Enterprise driving double-digit revenue and earnings growth,” said eBay Inc. President and CEO John Donahoe. “Macroeconomic headwinds in Europe and Korea will continue to be a challenge in the second half of the year. But our core businesses are strong and we continue to attract millions of new customers each quarter through mobile innovation. We remain confident in our ability to meet our goals and drive global commerce innovation and leadership.”
Non-GAAP operating margin contracted to 26.3% from 27.3%, while free cash flow generated in the quarter hit $658 million. eBay was sitting on$11.7 billion in cash and cash equivalents by the end of the quarter.
Investors appeared concerned with eBay’s third quarter guidance, which came in below estimates. While Wall Street was expecting eBay’s revenues to hit $3.96 billion and non-GAAP EPS of 65 cents, the company posted a range of $3.85 to $3.95 billion for sales and 61 to 63 cents for profit.
eBay wasn’t the only company to miss estimates after the bell on Wednesday. IBM IBM +0.36% trumped profit forecasts but missed on revenue, while Intel INTC -0.41% came in short on both measures. Amazon, one of the biggest names in the e-commerce business, is set to post results on July 22.
Shares in eBay took a beating in post-market trading on Wednesday, tumbling 6.3% to $53.74 by 6:25 PM in New York.
posted on July 17, 2013 04:12:36 PM new
Not sure what to make of it. Sounds like it was mixed results and people looking for strong 3rd quarter results dumped it.
eBay's strategy for mobile users has paid off, but at what cost to the buyer? I have seen several items listed via mobile and the photos can be all over the place, lots of typos, etc. When the mobile users begin losing interest, what will eBay do? Raise fees on long time sellers?
