Shares of eBay Inc (NASDAQ: EBAY) were
down more than 7 percent in pre-market trading, following the announcement of the company’s Q3 results.
Earnings of $0.45 per share and revenue of $2.22 billion beat the Street’s consensus by $0.01 and $30 million, respectively.
Given that Q3 is usually a seasonally tough quarter, it's likely that eBay’s stock is down on the conservative Q4 guidance,
Benchmark Senior Analyst Dan Kurnos told Benzinga.
Related Link: eBay Shares Tumble On Poor
Guidance
Nonetheless, the active buyers figure for Q3 (165 million) also came in slightly under consensus at of 166.5 million.
Kurnos then went into the company’s Marketplace GMV ex-StubHub, which was also slightly soft, but offset by a marginally better
than expected take rate, which resulted in a revenue beat.
He pointed out that StubHub’s numbers looked very promising, and clearly market the bright spot of the report.
eBay’s management team said it expects Q4 sales of $2.36 billion to $2.41 billion and EPS of $0.52 to $0.54, while the Street
was expecting $2.4 billion in sales and $0.54 in EPS. While many analysts were quite disenchanted, Kurnos believes Q4 results are
likely to come in at the high-end of guidance. However, there risk associated with consumer sentiment souring in Q4.
Shares traded at $30.14 in the pre-market session after closing at $32.52.
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John Fischer, Flickr
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