EBay, which owns the world's largest Internet auction, reported an increase in quarterly revenue by 4% and profit growth more than doubled. However, eBay shares fell 3% during additional trading after the closing of the main exchange session on Wednesday, April 19.
In January-March 2017, eBay sales totaled $ 2.22 billion compared to $ 2.14 billion a year earlier. Interviewed by FactSet StreetAccount analysts expected revenue of $ 2.21 billion.
The net profit of eBay reached $ 1.04 billion, or 94 cents per share, in the first quarter of 2017, more than double the figures for a year ago.
If you do not take into account the irregular sources of income and expenses, then eBay received adjusted profit of 49 cents per share, which is 1 cent more than the average forecast of Wall Street.
"The first quarter was a strong beginning of the year, marked by an accelerated growth in the number of active buyers, revenues and our core business in the US," said eBay president and CEO Devin Wenig,. "We are on the right track, as we continue to develop our trading platform for consumers, take advantage of technological advantages and promote the eBay brand at the global level".
The eBay report says that by the end of March 2017, the number of active Internet auction users increased to 169 million from 167 million three months earlier. Sales of goods on the company's websites increased by 2.4%, to $ 20.95 billion, while analysts predicted a turnover of $ 21.06 billion.
EBay's marketing and sales expenses increased by 4.5% to $ 562 million. The cost of product development jumped 16.3%, to $ 278 million.
In the second quarter, eBay expects to receive adjusted earnings from continuing operations in the range of 43 to 45 cents at revenues of $ 2.28 billion to $ 2.32 billion. Analysts expect an average of 47 cents per share and $ 2.32 billion, respectively.
As a result of all of 2017, eBay's profit, according to the company's own forecasts, will be 1.98-2.03 dollars per share, sales - 9.3-9.5 billion dollars. According to experts, the profit will reach $ 2.02 per share, revenue - $ 9.4 billion.