Business

EBay beats second-quarter sales estimates, raises FY outlook

(Reuters) – EBay Inc (EBAY.O) beat Wall Street estimates for quarterly revenue on Tuesday and raised its full-year outlook, as the e-commerce company benefited from a surge in online shopping by people staying indoors due to coronavirus-driven lockdowns.

Shares of eBay, however, fell more than 5% to $53.40 in extended trade.

EBay last week agreed to sell its classified ads business to Norway’s Adevinta ADEV.OL in a deal worth $9.2 billion, succumbing to longstanding pressure from activist investors Elliott Management Corp and Starboard Value.

The company now expects full-year net revenue to be between $10.56 billion and $10.75 billion, which also assumes the classifieds business’ results. It also forecast third-quarter sales above expectations.

Ebay also expects full-year adjusted profit to be in the range of between $3.47 and $3.59 per share. Analysts were expecting $3.51 per share.

Business has been booming for e-commerce firms and companies with strong online presence as the COVID-19 pandemic has led more people to use their mobile phones and computers to shop.

Revenue rose to $2.87 billion in the second quarter, from $2.42 billion a year-ago, beating analysts’ estimate of about $2.8 billion, according to IBES data from Refinitiv.

Excluding items, the company earned $1.08 per share, above estimates of $1.06 per share.

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