Monday, March 8, 2021

Ebay is newest on-line retail big to report robust earnings

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Shoppers cautious of crowds and uninterested in the pandemic are more and more filling their on-line carts, and EBay mentioned it ended the fourth quarter of 2020 with 185 million energetic patrons, a rise of seven %.

EBay Inc. gave income and revenue forecasts for the present interval that topped analysts’ estimates, suggesting the corporate is gaining new clients amid an e-commerce growth. Shares jumped about 10% in prolonged buying and selling.

Sales shall be $2.94 billion to $2.99 billion within the first quarter, the San Jose, California-based firm mentioned Wednesday in an announcement. Earnings, excluding some gadgets, shall be $1.03 to $1.08 a share. Analysts estimated revenue of 85 cents a share on gross sales of $2.54 billion.

Pandemic-wary consumers have turned to on-line marketplaces like EBay and Inc. to keep away from shops within the period of social distancing. EBay mentioned it ended the quarter with 185 million energetic patrons, a rise of seven%.

“EBay is proving that it has the ability to sustain the gains it is seeing from Covid,” mentioned Ygal Arounian, an analyst at Wedbush Securities. “We expect these trends to increasingly become ingrained in consumer behavior, which will support EBay in 2021.”

The e-commerce firm has been divesting items beneath strain from activist traders. Last 12 months, it offered event-tickets market StubHub to Viagogo for $4.05 billion and its classifieds enterprise to Norway’s Adevinta ASA in a cash-and-stock deal value $9.2 billion that leaves EBay with a 44.4% stake within the firm. It is exploring the sale of the corporate’s on-line market in Korea the place EBay will get greater than 10% of its income.

Chief Executive Officer Jamie Iannone, who took the helm in April, continues to be attempting to point out {that a} slimmed-down EBay can lure clients and get them to spend extra on the positioning.

Revenue jumped 28% to $2.89 billion within the interval ended Dec. 31, beating analysts’ common projection of $2.7 billion. Profit, excluding some gadgets, was 86 cents a share, in contrast with the typical estimate of 82 cents, in keeping with knowledge compiled by Bloomberg.

Gross merchandise quantity, the worth of all items offered on the positioning, rose 21% within the vacation quarter to 26.6 billion, down from a 22% year-over-year improve within the third quarter.

Shares rose to a excessive of $64.86 in prolonged buying and selling after closing at $58.04. the inventory has elevated almost 70% up to now 12 months.


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