E-commerce marketplace company eBay on Wednesday reported first-quarter earnings and sales that exceeded expectations. But eBay stock fell as the company also gave a lighter-than-expected sales forecast for the current quarter.
In results published late Wednesday, eBay said it earned an adjusted $1.25 per share on sales of $2.56 billion for the March-ending quarter. On average, analysts projected the San Jose-based company would post adjusted earnings of $1.20 per share on sales of $2.53 billion, according to FactSet.
For the same period a year earlier, eBay posted adjusted earnings of $1.11 per share on sales of $2.51 billion.
For the current quarter, eBay guided for sales between $2.49 billion and $2.54 billion. That came in behind the $2.56 billion analysts were projecting the company's June-ending quarter coming into the report, according to FactSet. The company is also forecasting adjusted earnings between $1.10 and $1.15 per share, while analysts were expecting adjusted earnings of $1.14 per share.
On the stock market today, eBay stock shed 3.1% at 49.50 in recent after-hours action.
EBay Ad Business Grows
EBay stock was strong coming into the report, up 17% year to date. The company's shares gained momentum following a better-than-expected fourth-quarter earnings report in late February.
Chief Executive Jamie Iannone said in a news release the quarter shows the company "continue(s) to make progress toward our goal of sustainable GMV growth."
EBay's GMV — gross merchandise volume — increased 1% year over year to $18.6 billion. In eBay's December quarter, GMV increased 2% year over year.
One growth area for eBay is its first-party advertising business. The firm said the sponsored listings for sellers generated $370 million in revenue for the March quarter, up 30% from last year.
EBay Stock: Technical Ratings
Prior to earnings, eBay fell 1% in Wednesday trading to 51.06. Shares have gained 12.5% in the past 12 months, compared to a 20% gain for the S&P 500 over the same span.
Coming into the report, eBay stock had an IBD Composite Rating of 91 out 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
Further, eBay's IBD Relative Strength Rating was 87 out of 99.
