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EBay Meets Earnings Expectations but Shares Fall

EBaymet analysts forecasts for earnings and beat expectations for revenue in the third quarter, driven by increased activity on the company's online marketplaces and rising transactions through its PayPal payments network.

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AP

But shares of the online retailer skidded in after-hours trading as the company provided a restrained outlook for the full year. (Click here for the latest after-hours quote for eBay.)

"Investors were assuming there would be upside surprise in earnings or the guidance," said Fred Moran, an analyst at Benchmark Capital.

"They maintained their full-year forecast essentially, which reflects a little caution around the global economy," Moran added. "Management could increase forecasts later in the year, but things are too volatile right now to stick one's neck out."

EBay reported earnings excluding items of 48 cents per share, an increase from 40 cents per share a year ago.

Net income rose to $490.5 million from $432 million.

Revenue increased 32 percent to $2.97 billion from $2.25 billion a year ago.

Analysts had expected the company to report earnings of 48 cents a share on revenue of $2.91 billion, according to Thomson Reuters.

EBay forecast full-year revenue of $11.5 billion to $11.6 billion and full-year profit of $1.98 to $2.01 a share.

When eBay reported second-quarter results in July, the company forecast full-year revenue of $11.3 billion to $11.6 billion and full-year profit of $1.97 to $2.00 a share.