Signage at eBay headquarters in San Jose, California, U.S.
David Paul Morris | Bloomberg | Getty Pictures
Shares of eBay popped 10% in prolonged buying and selling on Wednesday after the net market posted stronger-than-expected outcomes for the second quarter, and provided an upbeat forecast for the present interval.
This is how the corporate did within the second quarter in comparison with analyst estimates compiled by LSEG.
- Earnings per share: $1.37 adjusted vs. $1.30 anticipated
- Income: $2.73 billion vs. $2.64 billion anticipated
GMV, or the greenback worth of things offered, grew 6% yr over yr to $19.5 billion. That topped analysts’ projected $18.9 billion, per StreetAccount estimates.
For the third quarter, eBay mentioned income will land between $2.69 billion and $2.74 billion, above Wall Road expectations for $2.66 billion. The corporate additionally guided for adjusted earnings per share of $1.29 to $1.34. Analysts anticipated $1.31 per share.
EBay mentioned third-quarter GMV can be within the vary of $19.2 billion and $19.6 billion, which was greater than consensus estimates of $18.8 billion.
GMV steerage “contemplates potential disruptions from impending tariffs and the potential elimination of remaining de minimis exemptions,” eBay mentioned.
Earlier on Wednesday, President Donald Trump signed an govt order ending the loophole for low-value packages shipped from all international locations, efficient Aug. 29. The supply enabled shipments valued under $800 to enter the U.S. responsibility free.
EBay CEO Jamie Iannone mentioned in an interview following the earnings report that the corporate is “properly suited” to navigate any additional uncertainty generated by Trump’s tariff insurance policies or adjustments to de minimis.
“Once we have a look at what occurred, for instance, when de minimis was eradicated in China, it did have a deceleration in direct shipments, however a whole lot of the sellers began making their merchandise out there to patrons in different international locations just like the U.Ok. and Germany,” Iannone mentioned.
He added that the corporate “ahead deployed” about 75% of its stock from China into the U.S. earlier than the adjustments to de minimis insurance policies.
“We really feel snug with the steerage that we put on the market,” Iannone mentioned.
EBay faces sturdy competitors from on-line retail rivals Amazon, Walmart and Etsy, together with upstarts like low-cost e-commerce platforms Temu and Shein. To maintain patrons and sellers returning to its web site, the corporate has embraced “fanatic” buyers and “focus classes,” akin to collectible sneakers and buying and selling playing cards, used luxurious items and auto elements.
The corporate in Might named Peggy Alford, a former PayPal govt, as its new CFO, succeeding Steve Priest. EBay additionally introduced a broader management restructuring that concerned bringing its expertise groups nearer collectively, Iannone mentioned.
The corporate has additionally carried out extra synthetic intelligence instruments to assist shoppers discover merchandise on its web site, together with a shopping agent, which launched earlier this yr.
“We’re already seeing actually tangible advantages from generative AI on our P&L, and we expect we’re solely scratching the floor by way of tips on how to leverage our information,” Iannone mentioned.
As of Wednesday’s shut, eBay shares have been up 25% for the yr, whereas the Nasdaq has gained about 9%.
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