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EBay’s Shares Tumble On Weak Holiday Season

January 27, 2016

Ebay Reports Quarterly EarningsEbay Reports Quarterly Earnings

(Reuters) – EBay forecast lower-than-expected revenue and profit for the current quarter and the full year, sending the company’s shares (EBAY) down nearly 10% in extended trading.

The company forecast first-quarter adjusted profit of 43-45 cents per share and revenue of $2.05 billion-$2.10 billion.

Analysts on average were expecting a profit of 48 cents per share and revenue of $2.16 billion, according to Thomson Reuters I/B/E/S.

The company’s full-year adjusted profit forecast of $1.82-$1.87 per share and revenue forecast of $8.5 billion-$8.8 billion also missed analysts average estimates.

EBay, which is facing stiff competition from e-commerce rival Inc as well as traditional retailers, also reported that revenue did not grow in the holiday quarter.

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The company, which derives nearly 60% of its revenue from overseas, also faces headwinds from a strong dollar.

EBay’s revenue was $2.32 billion in the fourth quarter ended Dec. 31, flat with a year earlier and in line with analysts expectations.

Net income fell to $477 million, or 39 cents per share, from $1.02 billion, or 82 cents per share.