EBay stock falls after earnings beat, weak guidance
EBay Inc. shares fell more than 4.5% in the extended session Wednesday before retreating to a 1% loss after the company reported an earnings beat but lower-than-expected guidance. The company reported second-quarter net income of $642 million, or 64 cents a share, compared with $29 million, or 3 cents a share, in the year-ago period. Adjusted earnings were 53 cents a share. Revenue rose to $2.64 billion from $2.42 billion in the year-ago period. Analysts surveyed by FactSet had estimated adjusted earnings a share of 51 cents on revenue of $2.66 billion. For the third quarter, analysts modeled adjusted earnings of 56 cents a share on sales of $2.73 billion. The company said it expects third quarter adjusted earnings of 54 cents to 56 cents a share on revenue of $2.64 billion to $2.69 billion. EBay stock closed up 0.4% to $37.95 and has gained less than 1% this year, with the S&P 500 index rising 5.1%.
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