EBay Inc. reported higher-than-expected sales in its third quarter, but shares tumbled after the company lowered its annual profit outlook for the second consecutive quarter.
The online marketplace now expects adjusted per-share earnings of $1.99 to $2.01 on as much as $9.57 billion in sales, compared with prior guidance of $1.98 to $2.03 a share on up to $9.5 billion in sales.
Shares fell 5.4% to $35.92 during after-hours trading, erasing the 1.3% rise at market close Wednesday. EBay stock had gained 28% this year through Wednesday's close.
Gross merchandise volume grew 8% to $21.7 billion in the quarter, as the company added two million active buyers on its platforms.
EBay has tried to shed its reputation as an online garage sale by modernizing to attract younger and more loyal shoppers in recent years. Over the quarter the company revamped its website and marketing campaign in an attempt to gin up sales and gain momentum leading into the critical holiday shopping season. Earlier this year, eBay also added price-match and three-day delivery guarantees.
The company has also been looking to lure big brands, who may be turned off by Amazon.com Inc.'s high-pressure approach to selling, to set up shops on its marketplace. Chief Executive Devin Wenig said earlier this year that eBay was in talks with more brands and the company would provide an update later this year.
Overall the San Jose, Calif.-based company reported earnings of $523 million, or 48 cents a share, compared with earnings of $418 million, or 36 cents a share, a year earlier.
Analysts polled by Thomson Reuters were looking for earnings of 48 cents a share on $2.37 billion in revenue.
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(END) Dow Jones Newswires
October 18, 2017 17:29 ET (21:29 GMT)