EBay shares drop on cautious forecast

EBay

But eBay shares fell 5 percent to $31.45 in after-hours trading as the company provided a restrained outlook for the full year.

"Investors were assuming there would be upside surprise in earnings or the guidance," said Fred Moran, an analyst at Benchmark Capital.

"They maintained their full-year forecast essentially, which reflects a little caution around the global economy," Moran added. "Management could increase forecasts later in the year, but things are too volatile right now to stick one's neck out."

EBay reported third-quarter net income of $490.5 million, or 37 cents a share, compared to $432 million, or 33 cents a share, a year earlier.

Excluding stock-based compensation expenses and other items, profit was $628.2 million, or 48 cents a share, in the latest period, the company said. Revenue climbed 32 percent to $2.97 billion.

EBay was expected to earn 48 cents a share on revenue of $2.91 billion, according to Thomson Reuters I/B/E/S.

EBay forecast full-year revenue of $11.5 billion to $11.6 billion and full-year profit of $1.98 to $2.01 a share.

When eBay reported second-quarter results in July, the company forecast full-year revenue of $11.3 billion to $11.6 billion and full-year profit of $1.97 to $2.00 a share.

(Reporting by Alistair Barr, editing by Bernard Orr)