EBay (EBAY) stock slid late Wednesday despite the e-commerce company reporting third-quarter results that beat Wall Street’s expectations. A mixed outlook for the current holiday quarter may be to blame.
San Jose, Calif.-based eBay said that it earned an adjusted $1.36 per share for the September-ended quarter, up 14% from a year earlier. That beat the $1.33 per share that analysts polled by FactSet were forecasting. Sales increased 9% to $2.82 billion, compared with analyst estimates of $2.73 billion.
For the current quarter, eBay guided for sales of $2.86 billion at the midpoint of its range. That beat the $2.8 billion in sales for the December quarter that analysts had been projecting, according to FactSet.
However, eBay forecast adjusted earnings between $1.31 per share and $1.36 per share for Q4. Analysts were looking for $1.38 per share, according to FactSet.
On the stock market today, eBay stock fell nearly 7% to 92.95 in after-hours trades.
EBay Stock Rallying 58% This Year
Prior to earnings, eBay stock fell a fraction in regular trading. Shares have gained 57% this year. The gains have been powered by accelerating sales growth and a focus on AI-powered tools that have won over Wall Street analysts.
Coming into the report, eBay stock had an IBD Composite Rating of 93 out of 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
Shares have formed a cup base with a 101.15 buy point, according to IBD MarketSurge.
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