EBay stock tumbled late Wednesday after the e-commerce company reported third quarter earnings and sales that exceeded expectations. EBay gave a lower-than-expected holiday sales forecast.
San Jose, Calif.-based eBay said that it earned an adjusted $1.19 per share on sales of $2.58 billion for the September-ended quarter. Analysts polled by FactSet, meanwhile, projected adjusted earnings of $1.18 per share on sales of $2.55 billion for eBay.
For the same period a year earlier, eBay earned an adjusted $1.03 per share from sales of $2.5 billion.
"EBay delivered strong top and bottom line results in Q3," Chief Financial Officer Steve Pries said in a news release. "Solid execution within our strategic initiatives drove continued GMV growth amid a dynamic macro environment, and we are continuing to invest for the long-term while generating significant earnings growth and capital returns for shareholders."
However, eBay gave a lower-than-expected sales forecast for the current quarter. The company guided for sales of $2.56 billion, at the midpoint of its range. Analysts were projecting $2.65 billion in sales for eBay's December-ending quarter, according to FactSet.
On the stock market today, eBay stock fell more than 7% to 57.70 in after-hours action.
EBay Stock: Technical Ratings
Prior to earnings, eBay fell a fraction to 62.63 in Wednesday trading. Shares have gained 46% this year and 68% in the past 12 months, not including Wednesday's after-hours declines.
Coming into the report, eBay stock had an IBD Composite Rating of 89 out of a best-possible 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 also 89 out of 99. The RS Rating means that eBay has outperformed 89% of all stocks in IBD's database over the past year.
