Online auction giant eBay Inc (NASDAQ:EBAY) late Wednesday posted better-than-expected Q3 earnings results, but its tepid Q4 forecast sent shares reeling in after-hours trading.
The San Jose-based company reported Q3 EPS of $0.45, narrowly beating out Wall Street estimates of $0.44. Revenue rose 5.6% from last year to $2.22 billion, also eclipsing analysts’ view of $2.19 billion.
Looking ahead, eBay forecast Q4 EPS of $0.52 to $0.54, which could miss analysts estimates of $0.54. The company also projected Q4 revenue to range from $2.36 billion to $2.41 billion, while Wall Street is looking for $2.4 billion.
The company is knee deep in re-branding efforts aimed at appealing to a younger generation of shoppers. From WSJ:
The e-commerce site is trying to redefine itself to capture new, younger consumers who shop on their phones and don’t have time to scroll through thousands of listings. It is rolling out improved search features and personalized recommendations and reviews. A new ad campaign stars a supermodel, and wine is now available.
EBAY commented via press release:
“In Q3 we delivered good top- and bottom-line financial results, led by consistent performance across our business,” said Devin Wenig, President and CEO of eBay Inc. “We continued to transform the shopping experience on eBay, delivered more personalization capabilities and began to activate our updated brand messaging.”
EBAY shares fell $2.02 (-6.21%) to $30.50 in after-hours trading Wednesday. Prior to today’s report, EBAY had gained nearly 18% year-to-date.