EBay 3Q Profit More Than Doubles; Full-Year Guidance Raised

By Adriano Marchese

EBay Inc. on Wednesday reported higher third-quarter profit as sales grew in the period and raised its full-year earnings guidance.

For the quarter ended Sept. 30, the San Jose, Calif.-based online marketplace earned a profit of $664 million, or 94 cents a share, compared with $310 million, or 37 cents a share, for the same period last year.

Excluding items, eBay reported an adjusted profit of 85 cents a share for the quarter, beating analysts forecasts of 76 cents, polled on FactSet.

Sales rose to $2.61 billion from $2.08 billion.

Looking ahead, the company said it remains on track to complete the transfer of its classifieds business to Adevinta in the first quarter of 2021.

For the fourth quarter, eBay expects organic, foreign exchange-neutral year-on-year growth of between 19% and 22%, with earnings per share between 58 cents and 64 cents. On an adjusted basis, EPS is expected to be between 78 cents and 84 cents.

For the full year, the company now expects for revenue to be between $10.04 billion and $10.11 billion, up from the previous range of $9.59 billion and $9.78 billion.

EPS is also now expected higher, between $3 and $3.06, compared with previous expectations of $2.51 and $2.66. Adjusted EPS is also expected higher, between $3.34 and $3.40, up from the company's previous range of $3.04 and $3.16.

The board has declared a dividend of 16 cents a share.

Write to Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

October 28, 2020 16:45 ET (20:45 GMT)

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