EBay Forecasts Current-quarter Revenue Below Estimates

EBay Inc missed Wall Street estimates for quarterly revenue on Wednesday and the e-commerce firm forecast current-quarter sales below estimates, signaling opening up of economies and vaccine rollouts could fade the pandemic-led shopping boom.In the past year, customers turned to e-commerce platforms during the coronavirus pandemic as they were home-bound for months at a stretch, but vaccine rollouts are expected to lead a return to brick-and-mortar shopping as more people step out of their homes. EBay also faces competition in its marketplace business from larger rivals including Amazon.com and Walmart Inc’s online business.

EBay said it expects third-quarter revenue in the range of $2.42 billion to $2.47 billion, while analysts were expecting $2.92 billion, according to IBES data from Refinitiv.

The company’s second-quarter revenue rose to $2.68 billion, but fell short of analysts’ expectation of $3.00 billion.

On an adjusted basis, the company earned 99 cents per share, above analysts’ estimate of 95 cents.

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