EBay Inc reported solid second-quarter results on Wednesday but Chief Executive John Donahoe warned of "headwinds" in the second half of the year, sending shares of the e-commerce company down more than 6 percent in after-hours action.
Second-quarter net income was $822 million, or 63 cents a share, versus $730 million, or 56 cents a share, in the same period a year earlier. Revenue rose 14 percent to $3.88 billion. EBay was expected to earn 63 cents a share on revenue of $3.89 billion, according to Thomson Reuters I/B/E/S.
"Macroeconomic headwinds in Europe and Korea will continue to be a challenge in the second half of the year," Donahoe said. "But our core businesses are strong."
EBay lagged rival Amazon.com Inc for several years, but Chief Executive John Donahoe has led a turnaround that focuses on mobile shoppers, international expansion and tie-ups with local physical stores. EBay is spending heavily on these initiatives, and hopes they will fuel revenue and profit growth in coming years.
Wall Street has been worried about the second half of 2013, which needs to be strong for eBay to meet its full-year forecasts.
EBay shares fell 5.5 percent to $54.25 in after-hours trading on Wednesday.
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