EBay stock was lower late Wednesday, after the e-commerce company reported second-quarter earnings and sales that beat expectations. Sales guidance for the current quarter came in slightly below expectations.
EBay said that it earned an adjusted $1.18 per share on sales of $2.57 billion for the June-ending quarter. On average, analysts projected the San Jose, Calif.-based company would post adjusted earnings of $1.13 per share on sales of $2.53 billion, according to FactSet.
For the same period a year earlier, eBay posted adjusted earnings of $1.03 per share on sales of $2.54 billion.
For the current quarter, eBay guided for sales of $2.53 billion at the midpoint of its range. Prior to the company posting its results, analysts were projecting eBay would tally $2.54 billion in sales for the September-ending quarter, according to FactSet. Further, eBay projects adjusted earnings per share of $1.18, at the midpoint of its range for the third quarter, compared with the $1.13 projected by analysts ahead of the report.
Meanwhile, gross merchandise value increased 1% year over year to $18.4 billion for the quarter.
"EBay's strong Q2 results mark another step toward achieving sustainable, long-term growth," said Jamie Iannone, chief executive officer at eBay, in a news release. "The continued momentum in Focus Categories contributed to our increase in GMV, while new AI capabilities are driving innovation across the platform and transforming the experience for eBay customers around the world."
On the stock market today, eBay stock was down more than 1% at 55 in after-hours action.
EBay Stock: Technical Ratings
Prior to earnings, eBay stock gained 0.5% in Wednesday trading. Shares have gained 28% this year, outpacing a 16% gain for the S&P 500. Despite minimal revenue growth, eBay stock has built momentum this year as it has launched new AI features for sellers. EBay also laid off 1,000 employees, or 9% of its staff, earlier this year.
Coming into the report, eBay stock had an IBD Composite Rating of 77 out 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
Further, eBay's IBD Relative Strength Rating was 84 out of 99.
