© Reuters. The eBay app is seen on a smartphone on this illustration taken, July 13, 2021. REUTERS/Dado Ruvic/Illustration
(Reuters) -E-commerce platform eBay (NASDAQ:) beat market expectations for quarterly income and revenue on Tuesday, helped by wholesome shopper spending in the course of the vacation season and power in its focus classes resembling refurbished items and auto components.
Shares of the corporate rose round 4% in prolonged buying and selling.
EBay’s board of administrators additionally licensed a further $2 billion share repurchase program.
“We began to see our enterprise enhance in direction of the tip of November, notably within the U.S., pushed by shoppers searching for worth to stretch their restricted vacation budgets,” eBay CFO Stephen Priest mentioned in a post-earnings name.
The upbeat outcomes present that eBay’s market, which serves as a hub for patrons and sellers from world wide, is anticipated to profit as shoppers loosen budgets and spend closely amid an easing financial system.
The corporate reported income of $2.56 billion, beating analysts’ common estimate of $2.51 billion, in accordance with LSEG knowledge.
It reported adjusted revenue per share of $1.07, in contrast with an estimate of $1.03 per share.
Nonetheless, eBay CEO Jamie Iannone flagged weak spot in UK and Germany, saying the latter was experiencing detrimental e-commerce development.
The corporate slashed about 1,000 roles, or an estimated 9% of its workforce final month, becoming a member of rival e-commerce large Amazon.com (NASDAQ:) and different tech companies because the business braces for an unsure financial system.
It expects income for the primary quarter to be within the vary of $2.50 billion to $2.54 billion, in comparison with analysts’ estimate of $2.54 billion.
The agency additionally forecast adjusted earnings between $1.19 per share and $1.23 per share, above the estimate of $1.13 per share.
Gross merchandise quantity, a key business gauge that denotes the full quantity of products and companies offered on {the marketplace}, rose 2%, to $18.59 billion within the fourth quarter, up from $18.23 billion a yr in the past.
