EBay Beats Q1 Estimates; In Line With Q2 Forecast
EBay reported Q1 sales and earnings this afternoon that fell from the same quarter last year but beat analysts’ estimates just the same. The company’s revenue totaled $2.02 billion, down 7.8 percent from $2.19 billion in 2008. Net income was 28 cents per share, or $357.1 million, down from 34 cents and $459.7 last year. Earnings were 39 cents per share.
Analysts had been expecting worse, with estimates at $1.94 billion in revenue and earnings of 34 cents per share. There was nothing much out of line with eBay’s Q2 forecast, though–sales of $1.85 billion to $2.1 billion and 35-38 cents profit per share. Analysts’ forecasts equate to $1.98 billion and 35 cents per share.
The company attributed the of sales revenue loss to, among other things, a stronger dollar and lower sales among all of its Marketplaces businesses, which include StubHub, Shopping.com and eBay itself. Overall, the group saw a revenue drop of 18 percent to $1.22 billion year-over-year.
In contrast, Skype, one of the company’s subsidiaries, saw a revenue gain of 21 percent to $153.2 million year-over-year. EBay (EBAY) says that it plans to spin Skype off in an IPO sometime next year, though it’s widely believed to be open to an outright sale.