eBay (EBAY) Stock Drops 5% Despite Q3 Beat as Guidance Muted

October 27, 2021 5:18 PM EDT

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eBay (NASDAQ: EBAY) shares were trading 5% lower after-hours, despite the Q3 beat, with EPS coming in at $0.90, better than the consensus estimate of $0.89. Quarterly revenue grew 11% year-over-year (and 10% on an FX-Neutral basis) to $2.5 billion, compared to the consensus estimate of $2.46 billion. Gross merchandise volume (GMV) for Q3 was $19.5 billion, decreasing 10% year-over-year on an as-reported basis (and 12% on an FX-Neutral basis).

According to Jamie Iannone, the CEO of eBay, the quarterly results, which were driven by the near completion of the company’s managed payments migration, expansion of its advertising portfolio, and volume growth in its focus categories, show that the company’s strategic playbook continues to work.

The company provided its Q4 outlook, expecting EPS to range from $0.97 to $1.01, compared to the consensus estimate of $1.00. The company expects Q4 revenue to be between $2.57 and $2.62 billion versus the consensus of $2.65 billion.

The company also updated its 2021 capital allocation plans, increasing its estimated share buyback to $7.0 billion from $5.0 billion.

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