Oct 28 (Reuters) - E-commerce company eBay Inc on
Wednesday forecast holiday-quarter sales above estimates and
topped Wall Street profit expectations, as people staying at
home due to the COVID-19 pandemic took to online shopping.
Shares of the company, however, fell 5% in extended trade,
after it said active buyers rose by just 1 million to 183
million in the third quarter compared to the prior quarter.
"These metrics (active buyers) are likely raising concerns
regarding what growth might look like once the COVID-related
tailwinds for the business ease," Atlantic Equities analyst
James Cordwell said.
Still, eBay said it expects fourth-quarter revenue in the
range of $2.64 billion to $2.71 billion, above analysts'
estimate of $2.54 billion, according to IBES data from
"We continue to operate in an environment with low
visibility...The dynamics we faced in Q3 were different from
what we faced in Q2, and it's clear that Q4 will be different,"
eBay's interim chief financial officer, Andy Cring, said on a
conference call with analysts.
E-commerce firms and retailers with a strong online
presence, including eBay and bigger rivals Amazon.com Inc
and Walmart Inc, have witnessed a spike in
orders, with less brick-and-mortar shopping due to restrictions
related to the coronavirus crisis.
EBay also raised its full-year sales outlook to between
$10.04 billion and $10.11 billion. The forecast excludes the
classifieds business, which eBay in July agreed to sell to
Norway's Adevinta in a $9.2 billion deal.
Net income from continuing operations nearly tripled to $621
million, for the third quarter ended Sept. 30.
Excluding items, eBay earned 85 cents per share, above
estimates of 77 cents per share.
Revenue rose about 25% to $2.61 billion, beating analysts'
average estimate of $2.48 billion.
(Reporting by Akanksha Rana in Bengaluru;
Editing by Vinay Dwivedi)