Shares of eBay (EBAY) are down 3% after the e-commerce company offered second-quarter guidance that disappointed analysts and investors.
For this year’s first quarter, eBay reported earnings per share (EPS) of $1.25 U.S. and revenue of $2.6 billion U.S.
The Q1 results beat Wall Street consensus forecasts of $1.20 U.S. a share in profit and $2.53 billion U.S. in sales.
The strong results were due to promoted listings and display advertisements that grew 30% from the year-earlier quarter.
Unfortunately, the Q1 print was overshadowed by the Q2 guidance.
eBay said it expects revenue of $2.49 billion U.S. to $2.54 billion U.S. Profits for the current quarter are anticipated at $1.10 U.S. to $1.15 U.S. a share.
Wall Street had estimated $2.56 billion U.S. in sales and profits of $1.14 U.S. a share for Q2.
Management said the Q2 guidance reflects a downturn in the German and British markets, where e-commerce growth has turned negative, notably for consumer discretionary items.
The company said it will continue to work towards sustainable growth with the aim of resuming topline growth in the mid-single digits.
Prior to today (May 2), the stock of eBay had increased 16% this year to trade at $51.06 U.S. per share.
