Signage at eBay headquarters in San Jose, California, U.S.
David Paul Morris | Bloomberg | Getty Photos
Shares of eBay popped 10% in prolonged buying and selling on Wednesday after the net market posted stronger-than-expected outcomes for the second quarter, and supplied an upbeat forecast for the present interval.
This is how the corporate did within the second quarter in comparison with analyst estimates compiled by LSEG.
- Earnings per share: $1.37 adjusted vs. $1.30 anticipated
- Income: $2.73 billion vs. $2.64 billion anticipated
GMV, or the greenback worth of things offered, grew 6% yr over yr to $19.5 billion. That topped analysts’ projected $18.9 billion, per StreetAccount estimates.
For the third quarter, eBay stated income will land between $2.69 billion and $2.74 billion, above Wall Road expectations for $2.66 billion. The corporate additionally guided for adjusted earnings per share of $1.29 to $1.34. Analysts anticipated $1.31 per share.
EBay stated third-quarter GMV could be within the vary of $19.2 billion and $19.6 billion, which was greater than consensus estimates of $18.8 billion.
GMV steering “contemplates potential disruptions from impending tariffs and the potential elimination of remaining de minimis exemptions,” eBay stated.
Earlier on Wednesday, President Donald Trump signed an government order ending the loophole for low-value packages shipped from all international locations, efficient Aug. 29. The availability enabled shipments valued beneath $800 to enter the U.S. obligation free.
EBay CEO Jamie Iannone stated in an interview following the earnings report that the corporate is “properly suited” to navigate any additional uncertainty generated by Trump’s tariff insurance policies or adjustments to de minimis.
“After we have a look at what occurred, for instance, when de minimis was eradicated in China, it did have a deceleration in direct shipments, however loads of the sellers began making their merchandise accessible to patrons in different international locations just like the U.Okay. and Germany,” Iannone stated.
He added that the corporate “ahead deployed” about 75% of its stock from China into the U.S. earlier than the adjustments to de minimis insurance policies.
“We really feel snug with the steering that we put on the market,” Iannone stated.
EBay faces sturdy competitors from on-line retail rivals Amazon, Walmart and Etsy, together with upstarts like low-cost e-commerce platforms Temu and Shein. To maintain patrons and sellers returning to its web site, the corporate has embraced “fanatic” consumers and “focus classes,” reminiscent of collectible sneakers and buying and selling playing cards, used luxurious items and auto elements.
The corporate in Could named Peggy Alford, a former PayPal government, as its new CFO, succeeding Steve Priest. EBay additionally introduced a broader management restructuring that concerned bringing its know-how groups nearer collectively, Iannone stated.
The corporate has additionally applied extra synthetic intelligence instruments to assist shoppers discover merchandise on its web site, together with a procuring agent, which launched earlier this yr.
“We’re already seeing actually tangible advantages from generative AI on our P&L, and we expect we’re solely scratching the floor when it comes to how one can leverage our information,” Iannone stated.
As of Wednesday’s shut, eBay shares have been up 25% for the yr, whereas the Nasdaq has gained about 9%.
WATCH: EBay breakout is right here
