eBay Inc (NASDAQ:EBAY) reported third-quarter earnings that slightly beat analyst expectations, but shares plummeted 10% in after-hours trading due to disappointing guidance for the crucial holiday shopping season.
The e-commerce giant posted adjusted earnings per share of $1.19, edging past the analyst estimate of $1.18. Revenue for the quarter came in at $2.6 billion, surpassing the consensus estimate of $2.55 billion and representing a 3% increase YoY on both an as-reported and FX-neutral basis.
However, eBay's outlook for the fourth quarter fell short of Wall Street projections. The company expects Q4 EPS between $1.17 and $1.22, below the consensus of $1.22. Revenue guidance of $2.53-2.59 billion also missed analysts' expectations of $2.649 billion.
"We achieved another quarter of positive GMV growth and delivered strong results across our key metrics," said Jamie Iannone, Chief Executive Officer at eBay. "Our Focus Categories and geo-specific investments are driving momentum in the business, and we are leveraging the power of Al to create magical innovations for our customers."
Gross Merchandise Volume (GMV) for Q3 was $18.3 billion, up 2% on an as-reported basis and 1% on an FX-neutral basis compared to the same period last year.
The company's advertising business continued to show strength, with first-party advertising products generating $396 million in revenue, a 15% increase YoY.