EBay stock slipped late Wednesday despite the company's fourth-quarter earnings and sales beating expectations. The e-commerce firm's sales guidance missed expectations.
San Jose, Calif.-based eBay said that it earned an adjusted $1.25 per share on sales of $2.58 billion for the December-ended quarter. Analysts polled by FactSet projected earnings of $1.20 per share on sales of $2.57 billion.
Sales advanced 1% while earnings grew 17% year over year.
For the current quarter, eBay guided for sales of $2.54 billion at the midpoint of its range. That's compared to estimates eBay would tally $2.59 billion in sales for the March-ending quarter, according to FactSet. Guidance for adjusted EPS of $1.34 came in ahead of prior Wall Street forecasts of $1.33 per share, according to FactSet.
On the stock market today, eBay stock is down more than 7% at 63.74 in recent after-hours action.
Macro Challenges, Tariffs Weigh On eBay Outlook
The total value of products sold within eBay's marketplace – gross merchandise volume – increased 4% year over year to $19.3 billion, beating expectations of $19.1 billion. Growth slightly accelerated from a 2% gain in the third quarter.
Chief Executive Jamie Iannone said in a press release that eBay's GMV has grown for three straight quarters.
"We took significant steps toward our vision of reinventing the future of e-commerce for enthusiasts," Iannone said.
But eBay's guidance for GMV between $18.3 billion and $18.6 billion for the March quarter missed estimates of $18.9 billion.
In an investor presentation, the company said it expects "continued momentum for strategic initiatives, tempered by macroeconomic challenges, the potential impact of tariffs and net headwind of roughly 50 basis points from calendar dynamics."
EBay Stock: Technical Ratings
Prior to earnings, eBay fell 2.5% in Wednesday trading. Shares have gained 11% so far this year and 60% in the past 12 months.
Shares broke out above a cup-with-handle buy point of 70.27 with gains early Wednesday, according to MarketSurge. However, the stock gave up those gains before the regular session closed.
Coming into the report, eBay stock had an IBD Composite Rating of 96 out of a best-possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating.
