Online auction and payment company eBay (NASDAQ:EBAY) on Wednesday reported second-quarter revenue slightly below forecasts and provided forecasts for the rest of the year that also fell short of earlier estimates.
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Revenue for the three months ended June 30 rose 14% from a year ago to $3.88 billion with earnings per share of 63 cents. Analysts had predicted revenue of $3.89 billion and 63 cents a share.
The company reported second quarter net income of $640 million, or 49 cents per diluted share, a 7.5% drop from $692 million, or 53 cents per share, a year earlier.
For its PayPal payments unit, eBay said revenue rose 20% to $1.62 billion, from $1.36 billion during the same period a year ago. The marketplace division, home of eBay's namesake auction site, saw revenue rise to $2 billion, from $1.81 billion.
For the current quarter, the company projected revenue of $3.8 billion to $3.95 billion, and earnings per share of 61 cents to 63 cents. Wall Street had forecast $3.97 billion in revenue and earnings per share of 65 cents.
For the full year, the company forecast revenue in a range of $16 billion to $16.5 billion, and earnings per share in a range of $2.70 to $2.75. Those projections also fell short of analysts’ estimates of $16.31 billion and $2.75.
EBay shares fell $2.83, or almost 5%, to $54.55 in late trading.
"We had a strong second quarter, with $51 billion of enabled commerce volume across Marketplaces, PayPal and eBay Enterprise driving double-digit revenue and earnings growth," eBay President and CEO John Donahoe said in a statement.
“Macroeconomic headwinds in Europe and Korea will continue to be a challenge in the second half of the year. But our core businesses are strong and we continue to attract millions of new customers each quarter through mobile innovation," he added.