eBay Inc (EBAY) Earnings In Line, But Guidance is Slashed

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eBay Inc. (NASDAQ:EBAY) released its earnings report for the three months through September this afternoon after the market close. The company showed earnings per share of 64 cents for the third quarter. Revenue in the period came to $3.9 billion. On today’s market, stock in eBay trended down to close the day at $53.52 per share.


In the run up to the release of this earnings report, analysts studying eBay Inc. (NASDAQ:EBAY) were looking for earnings of 63 cents per share. Revenue in the third quarter was expected to come in at $3.9 billion. The firm managed to earn 55 cents per share in the same three month period as 2012, and revenue came in at $3.4 billion last year.

eBay earnings report

Today’s earnings are a reflection of many separate trends that are going on at eBay Inc. (NASDAQ:EBAY). The company has redesigned its website, and its service, to better compete with online retail king Amazon.com, Inc. (NASDAQ:AMZN). Whether the redesign is really working cannot be seen from this report, and it won’t be fully apparent for several quarters to come.

PayPal, the online payments processor owned by eBay Inc (NASDAQ:EBAY), is also being re-engineered for new technological horizons. The service is being expanded onto mobile platforms at the moment, and it is expected to see a bump in its earnings for the next few quarters as a result. eBay is in a period of reorganization, and the company’s future hangs on the success of its programs.

eBay has introduced a same day delivery service in the United States in order to deal with a similar service that Amazon.com Inc. (NASDAQ:AMZN) has been offering for some time. The company’s efforts to once again compete with Amazon have been noted, but it probably won’t effect that company’s earnings report, due on October 24.

eBay performance

So far in 2013, shares in eBay Inc. (NASDAQ:EBAY) have increased in value by just shy of 5 percent. That number represents a large underperformance when compared with the wider market. The S&P 500 grew by about 20 percent since January 1.

eBay Inc. executives will host a conference call to discuss this earnings report at 5 PM EST. At the top of the agenda will be the company’s mobile strategy and the firm’s earnings projections for the fourth quarter and beyond.

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