EBay Inc. forecasted a poor sales and revenue expectation for the latest quarter, continuing its drop from the records hit during the pandemic when buyers were locked at home. In extended trading, the stock dropped as much as 8%.
The San Jose, California-based firm said in a statement on Wednesday that earnings for the quarter ending in June will be between $2.35 billion and $2.4 billion.
According to statistics gathered by Refinitiv IBES, analysts anticipated $2.53 billion on average. Earnings will be $0.87 to $0.91 per share, missing analysts' expectations of $1.02.
As the pandemic's quick growth comes to an end, it is the newest e-commerce company to give poor earnings estimates.
As buyers return to in-person exploring and purchasing, the online shopping site's pace has weakened since the epidemic, when many abandoned storefronts for websites.
Even if overall expenditure on the site falls, eBay's marketing and payments divisions, according to CEO Jamie Iannone, can grow profits.
He has promised to focus on the most expensive things that require verification, such as brand-name footwear, watches, and other collectibles, and to invest less money on promotions that entice infrequent customers.
Amazon.com Inc.'s marketing has likewise reached a plateau from its epidemic highs. The company announced last week that sales from its online stores fell 3% in the first quarter compared to the same period last year.
EBay's revenue dropped 5.9% to $2.48 billion in the quarter ended March 31, the firm stated in an announcement on Wednesday.
According to Refinitiv statistics, analysts projected $2.46 billion on average. Earnings per share were $1.05, exceeding predictions of $1.04 by a cent.
After closing at $54.42 in New York, the stock plummeted to a trough of $49.50 in extended trading. In keeping with the overall market, the stock has dropped nearly 18% this year.
EBay had 142 million active purchasers at the end of the quarter, decreasing 13% from a year ago. The worth of all things marketed on the site declined 20% to $19.4 billion in total product volume.
Due to a restricted workforce and a continuing supply chain problem, the e-commerce industry has seen its expenses rise in recent months.
The situation in Ukraine has dragged on e-commerce activity in the company's major markets of Germany and the United Kingdom, according to Chief Financial Officer Stephen Priest on a post-earnings teleconference.
"Those detrimental consequences will last until 2022," he said.