Yahoo Finance EBay Rises After Second-Quarter Revenue Outlook Tops Estimate
(Bloomberg) -- EBay Inc. rose after projecting revenue in the current quarter that exceeded analysts’ estimates, suggesting the e-commerce company’s efforts to boost sales after a post-pandemic slump are paying off.
Most Read from Bloomberg
Nigeria Targeted a UK Mansion; Its Next Leader’s Son Now Owns It
Carl Icahn’s Wealth Plunges $10 Billion on Hindenburg Short-Seller Report
Wall Street Rattled by 15% Tumble in Pair of Banks: Markets Wrap
Revenue will be $2.47 billion to $2.54 billion in the period ending in June, the company said in a statement Wednesday. Analysts estimated $2.43 billion. Sales and earnings in the quarter ended March 31 also beat expectations, showing that EBay is slowing down its loss of customers.
The shares increased as much as 8% in after-market trading.
Chief Executive Officer Jamie Iannone is trying to cut costs after a boom during the pandemic fizzled out. Earlier this year, EBay announced it would cut about 500 employees, or 4% of its workforce.
First-quarter revenue of $2.51 billion beat analysts’ estimates of $2.48 billion and grew 1% from a year earlier, reversing sales declines.
The San Jose, California-based company is aiming to sell more luxury items like watches to boost revenue while also offering refurbished items to appeal to price-conscious shoppers. In an effort to lure collectors, EBay provides a service to trade and authenticate trading cards, collectible sneakers and other items and has been building climate-controlled vaults to store them. In March, it announced a new “verified condition” badge for used heavy construction equipment sold on the site to assure buyers the machinery has been inspected.
Gross merchandise volume, the value of all goods sold by EBay, declined 5% to $18.4 billion in the quarter, but topped analysts’ average estimate. EBay said it had 133 million active buyers in the first quarter, down 7% from a year earlier.
The stock has gained almost 5% so far this year, after dropping 38% in 2022.
Amazon.com Inc. is scheduled to report financial results on Thursday, and investors will be watching to see if cost-cutting measures have helped profitability and whether cloud services sales growth is bottoming out. The world’s largest e-commerce company is cutting 27,000 employees after rapid expansion during the pandemic left it with too many personnel.
Most Read from Bloomberg Businessweek
Europe’s ‘Golden Visa’ Programs Are Dying Out as Housing Costs Rise
Women Chief US Economists Have Gotten Even Rarer on Wall Street
More Companies Head to Space, But No One Can Agree on the Rules Up There
©2023 Bloomberg L.P.
