EBay shares fall on quarterly loss, lowered outlook
Ebay shares fell in extended trading by 6%.
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EBay joined the list of e-commerce retail casualties reporting a loss and cutting its outlook.
The company's revenue forecast for the second-quarter revenue is between $2.35 billion and $2.40 billion.
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That comes in under analyst expectations of $2.54 billion, according to Refinitiv IBES data.
Its full-year forecast also missed expectations.
Shares are down 6% in premarket trading.
An eBay sign sits in front of the company's headquarters in San Jose, Calif. (AP Photo/Marcio Jose Sanchez, File) (AP Newsroom)
For the year, eBay sees a loss from continuing operations of 5 cents to 25 cents a share, or an adjusted profit of $3.90 to $4.10 a share, and $9.6 billion to $9.9 billion in revenue.
That is down from an earlier projection for a profit from continuing operations of $3.15 to $3.35 a share, or $4.20 to $4.40 a share as adjusted, and $10.3 billion to $10.5 billion in revenue.
In the post-earnings call, Chief Financial Officer Stephen Priest pointed to the business taking a hit from the conflict in Ukraine, which has impacted e-commerce traffic in European markets.
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Rivals such as Amazon.com and Etsy Inc. have reported similar weakness.
EBay's gross merchandise volume fell 20% to $19.4 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| EBAY | EBAY INC. | 61.41 | +0.59 | +0.97% |
The company reported a first-quarter loss of $1.34 billion, or $2.28 a share. On an adjusted basis, profit from continuing operations was $1.05 a share.
Revenue fell 6% to $2.48 billion, just above expectations of $2.46 billion.
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The forecast for earnings in the current period of 87 cents to 91 cents per share was below the average analyst view of $1.01 per share.
Reuters contributed to this report.