EBay Shares Fall 9% On Lower First-quarter Expectations

EBay Inc. shares fell 9% on Wednesday after the online auction company reported earnings and revenue in line with expectations but predicted first-quarter earnings below forecast. EBay said it earned an adjusted $600 million, or 50 cents a share, in the fourth quarter, compared with 55 cents a share in the year-ago period. Revenue hit $2.3 billion in the quarter, flat compared with the fourth quarter of 2014. Analysts polled by FactSet had expected adjusted earnings of 50 cents on sales $2.3 billion. The company said it expects net revenue between $2.05 billion and $2.10 billion in the first quarter, and adjusted earnings per share from continuing operations between 43 cents and 45 cents in the quarter. The analysts surveyed by FactSet expected first-quarter adjusted earnings of 48 cents a share on sales of $2.15 billion.