EBay Experiences Sturdy Vacation Quarter, Expands Buyback Plan

EBay Inc. posted a robust vacation quarter, giving buyers contemporary hope that the corporate can enhance earnings following steep job cuts.

The corporate additionally added $2 billion to an current inventory buyback programme, growing the entire repurchase authorisation to $3.4 billion.

Fourth-quarter revenue was $1.07 a share on gross sales of $2.56 billion, the corporate mentioned Tuesday in an announcement. Analysts estimated $1.03 on gross sales of $2.51 billion.

As soon as an trade pioneer, the San Jose, California-based firm has been dropping US market share for years to the likes of Amazon and Walmart. In an effort to be “extra nimble,” eBay introduced final month that it was slicing 1,000 jobs, or about 9 % of its full-time workforce. That adopted layoffs that affected about 500 workers in 2023.

Chief government officer Jamie Iannone is looking for niches wherein the corporate can thrive. It sells watches, sneakers and different luxurious objects to enchantment to collectors, and provides authentication providers designed to root out counterfeits. EBay additionally sells refurbished home equipment and automotive components to enchantment to cost-conscious customers and do-it-yourselfers.

“Our outcomes display the power of our technique, and I’m happy with our accelerated tempo of innovation as we work to essentially improve the client expertise on eBay,” Iannone mentioned within the assertion.

Gross merchandise quantity, the worth of all items bought on eBay, elevated 2 % to $18.6 billion within the vacation quarter, topping analysts’ common estimates of $18.2 billion. The corporate mentioned it had 132 million lively patrons within the quarter, down 2 % from a 12 months earlier.

Iannone is also providing extra promoting and funds merchandise for eBay retailers in an effort to offset slowing development on the platform. Promoting income of $393 million topped analysts’ estimates of $375 million and helped eBay enhance earnings even because it misplaced prospects.

The shares rose about 4 % in prolonged buying and selling after closing at $44.39 in New York. The inventory has elevated 1.8 % this 12 months.

The corporate projected earnings of $1.19 to $1.23 a share on income of as a lot as $2.54 billion within the present interval ending in March. Analysts, on common, estimated revenue of $1.10 per share on gross sales of $2.54 billion.

By Spencer Soper

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EBay Falls After Vacation Income Outlook Misses Estimates

EBay Inc. issued a bleak income outlook for the busy vacation quarter, suggesting the corporate continues to wrestle because it loses customers to bigger rivals comparable to Amazon and Walmart.