EBay is trying to embrace increased demand for used and refurbished items from shoppers eager to save money.
(Bloomberg) — EBay Inc. gave a profit forecast for the fourth quarter that missed the average analyst estimate, stoking investor concerns about narrowing margins heading into the holiday shopping season.
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Profit, excluding some items, will be $1.31 to $1.36 a share in the period ending in December, the company said Wednesday in a statement. Revenue will be $2.83 billion to $2.89 billion. Analysts, on average, estimated sales of $2.8 billion and per-share earnings of $1.39, according to Bloomberg-compiled data.
EBay shares fell around 7% in extended trading after closing at $99.54. EBay shares are up 61% so far this year, more than triple the gains of the S&P 500 Index.
Investors are looking for clues about the mood of consumers heading into gifting season. EBay is trying to embrace increased demand for used and refurbished items from shoppers eager to save money. In September it acquired Tise, a Nordic marketplace for used clothing and home goods.
US online spending in November and December is expected to increase 5.3% from a year ago to $253.4 billion, according to Adobe Inc., which monitors traffic to retail websites and sales of more than 100 million products.
Yet overall holiday spending is expected to go down due to tariff-related price hikes and a weakening labor market, according to a survey released in September by PricewaterhouseCoopers.
Third-quarter profit, excluding some items, was $1.36 a share. Revenue increased 9% to $2.82 billion. Analysts, on average, estimated $1.34 per share on sales of $2.73 billion.
Gross merchandise volume, the value of all goods sold on eBay, rose 10% to $20.1 billion during the third quarter, topping the average estimate of $19.4 billion. The company said it had 134 million active buyers as of Sept. 30, just above the average estimate of 135 million.
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