EBay Inc. exceeded expectations with its financial results Wednesday but its shares fell 6.3% in after-hours trading after the company’s forecast for the holiday period came up short.
The company posted third-quarter income from continuing operations of $283 million, or 43 cents a share, down from $605 million, or 86 cents a share, in the year-prior quarter. After adjusting for stock-compensation and other expenses, eBay EBAY,
Revenue rose to $2.50 billion from $2.26 billion, while analysts were expecting $2.46 billion.
EBay reported gross merchandise volume (GMV) of $19.5 billion, down 10% from a year prior and down 12% when excluding foreign-exchange impacts. Analysts expected $19.1 billion in GMV, which measures the value of transactions completed on the platform.
The company continues to make progress with its managed-payments initiative as it looks to have greater control over the payments process on its platform. During the third quarter, eBay saw more than 90% of its global on-platform volume take place through its managed-payments offering, up from 71% in the second quarter. More than 18 million sellers have migrated over to managed payments.
EBay’s Promoted Listings offering generated $207 million in revenue during the period, up 12% from a year earlier and up 9% when excluding currency impacts.
“Our Q3 results, driven by the near completion of our managed payments migration, expansion of our advertising portfolio, and volume growth in our focus categories, demonstrate that our strategic playbook continues to work,” Chief Executive Jamie Iannone said in a statement.
For the fourth quarter, eBay expects $2.57 billion to $2.62 billion in revenue and 97 cents to $1.01 in adjusted earnings per share. The FactSet consensus calls for $2.65 billion in revenue and $1.00 in adjusted EPS.
Shares of eBay have risen 7.4% over the past three months as the S&P 500 SPX,
