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Ebay beats Q3 estimates, raises full-year guidance

Ebay released its third quarter earnings report after hours on Wednesday, beating investor expectations on both revenue and earnings per share. The company raised its full year guidance on top and bottom lines, but both new levels fell short of investor estimates. Yahoo Finance’s Emily McCormick breaks down the company’s earnings report on The Final Round.

Clarification: eBay's Q3 revenue of $2.6 billion increased 25% Y/Y on as-reported basis excluding impact from its Classifieds business, which is being sold to Adevinta.

Video Transcript

SEANA SMITH: We also have some breaking news out. EBay is out with its earnings results. Emily McCormick has those numbers for us. Emily?

EMILY MCCORMICK: Well, Seana, similar story here with eBay results as with we had with Etsy earlier. Strong third-quarter results thanks to the boost in e-commerce that we saw on the whole. But again, weak guidance here pointing to some deceleration to finish out fiscal 2020.

And we saw for eBay adjusted earnings of $0.85 per share, better than the $0.80 expected. Also better than the $0.67 a share post in the same quarter last year. We saw revenue of $2.6 billion, actually down by about 1.6% over last year. But again, also ahead of expectations.

Now, for eBay, total marketplace's gross merchandise volume-- that's the value of everything that was successfully sold during the quarter-- came in at $25.05 billion. That was up about 21% over last year, and again, ahead of expectations.

Now, eBay actually raised its full-year guidance in this evening's release on both the top and bottom lines. But these new ranges still fell short of consensus estimates. Now, we've had on the top line eBay seeing full-year net revenue at $10.04 billion to $10.11 billion.

Analysts had been looking for $10.3 billion. And on the bottom line, the company seeing full-year adjusted earnings of between $3.34 a share to $3.40 a share. So short again of the $3.41 that had been expected.

Now, taking a look at the stock in the afterhours, we do have shares trading around the flat line. Now down about 4%, taking a look at the Yahoo Finance earnings chart and that stock chart. So again, under a bit of pressure here, although those shares were up about 49% for the year-to-date through today's close, Seana.