eBay beats estimates, stock rises modestly amid mixed guidance

Investing.com -- eBay Inc (NASDAQ: EBAY) reported second quarter results that exceeded analyst expectations for both earnings and revenue, though shares rose just 1% in after-hours trading Wednesday as the company issued mixed guidance for the current quarter.

The e-commerce platform posted adjusted earnings per share of $1.60, beating the analyst consensus of $1.51 by $0.09. Revenue reached $3.1 billion, up 15% YoY and above the $3.02 billion estimate. The company's gross merchandise volume climbed 15% on an as-reported basis to $22.4 billion.

For the third quarter, eBay projected revenue of $3.07 billion to $3.12 billion, with a midpoint of $3.095 billion that exceeds the analyst consensus of $2.99 billion. However, the company's adjusted EPS guidance of $1.36 to $1.42, with a midpoint of $1.39, falls short of the $1.44 analyst estimate.

"eBay's second quarter delivered meaningful, broad-based momentum driven by continued innovation and focused execution against our strategic roadmap," said Jamie Iannone, Chief Executive Officer at eBay.

The modest 1% stock gain reflects investor uncertainty as stronger-than-expected revenue guidance contrasts with weaker earnings projections. Chief Financial Officer Peggy Alford noted the company is "increasing our full-year top- and bottom-line outlook" based on business momentum.

eBay generated adjusted operating margin of 28.5% in the quarter, up from 28.3% in the prior year period. The company returned $448 million to stockholders during the quarter, including $310 million in share repurchases and $138 million in dividends.

On July 30, eBay completed its $1.4 billion acquisition of Depop, a consumer-to-consumer fashion marketplace targeting Gen Z and Millennial shoppers. The third quarter outlook includes the expected impact from the Depop acquisition.

The company's first-party advertising products generated $570 million in revenue during the quarter, up 25% YoY.

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