EBay outlook falls short; shares drop

Online commerce giant eBay President Devin Wenig.
Odd Andersen | AFP | Getty Images

EBay beat expectations by a penny on earnings but its outlook fell short.

After the earnings announcement, the company's shares lost more than 4 percent in extended-hours trading. (Click here for the latest quote.)

Third-quarter net income $689 million, or 53 cents a share, up from $597 million, or 45 cents a share, a year earlier.

Excluding items, the company earned 64 cents a share, up from 55 cents a share a year ago.

Revenue increased 14 percent to $3.89 billion from $3.4 billion.

Analysts had expected eBay to report earnings of 63 cents a share on revenue of $3.91 billion, according to Thomson Reuters.

Mobile drove a significant portion of new user growth, Chief Executive John Donahoe said.

Revenue from its PayPal unit increased 19 percent to $1.6 billion.

For the fourth quarter, eBay expects adjusted earnings of 79 to 81 cents a share on revenue of $4.5 to $4.6 billion. Analysts currently expect 83 cents a share on revenue of $4.64 billion.