Ebay shares tumbled in late trading Wednesday after its profit outlook for current quarter fell far short of estimates and it handed in a full-year outlook that also disappointed.
The online auction site operator said it expects 2010 full-year revenue of between $8.8 billion and $9.19 billion, and earnings of between $1.29 and $1.34 a share.
Wall Street analysts expected 2010 revenue of $9.12 billion, and earnings of $1.67 per share.
In addition, eBay said it expects to generate a profit of between 27 cents and 29 cents a share in its current quarter, well short of the 40 cents a share that 27 analysts who follow the company had expected, according to Thomson Reuters.
The auctioneer lowered its revenue guidance for the current quarter to between $2.15 billion to $2.2 billion. Analysts' consensus stood at $2.21 billion.
Colin Gillis, an analyst at BGC Partners, called eBay's second-quarter outlook "lackluster" and said the company would have needed to raise its full-year guidance to keep the Street happy.