Q3 Revenues at eBay Jump 32 Percent to Meet Analyst Expectations

EBay, the e-commerce and digital payments giant, met expectations in the third quarter with revenues increasing 32 percent to $3 billion compared to the same period a year earlier.

The company’s net income totaled $490.5 million, or 37 cents a share.

Non-GAAP revenues, which eliminates the impact of several recent million-dollar acquisitions, totaled $682.2 million, or 48 cents a share, to nail analyst expectation’s on the head.

Revenues were also on the high end with estimates, ranging from $2.25 billion to $2.9 billion, according to a poll of analysts by Thomson Reuters.

Before earnings were released, eBay’s stock was down 80 cents or 2.4 percent to close at $33.07, and in after hours, the stock continued to fall, dropping another 4.3 percent.

The reason may be its revenue outlook for the fourth quarter, which should be its busiest given the hoildays.

In Q4, it expects to record revenue in the the range of $3.2 to $3.35 billion with non-GAAP earnings per share between 55 and 58 cents. It said full-year guidance included revenues between $11.5 and $11.6 billion, and non-GAAP earnings per share between $1.98 and $2.01. GAAP earnings per share are higher given a one-time gain on the sale of Skype to Microsoft.

The San Jose-based Internet retailer is working hard to become a technology site, rather than a marketplace that has to compete against other major providers, such as Amazon. To that end, it hosted a major event in San Francisco earlier this month, where it unveiled the X.commerce platform, which has been stitched together through multiple acquisitions and is designed to empower other mostly offline retailers to have online and mobile presences.

It believes that mobile, in particular, will be a huge driver of its business going forward.

In its Q3 release, President and CEO John Donahoe stated: “Mobile commerce continues to accelerate as consumers change the way they shop and pay. We expect eBay mobile commerce to generate almost $5 billion in merchandise volume this year and PayPal mobile to exceed $3.5 billion in payment volume.”


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