Shares of eBay Inc. initially plunged more than 11% in extended trading Wednesday after the e-commerce company reported fiscal fourth-quarter results in line with Wall Street analysts’ estimates but issued guidance that rattled investors.
reported net income of $647 million, or $1.05 a share, compared with net income of $591 million, or 85 cents a share, in the year-ago quarter. Revenue improved 5% to $2.61 billion from $2.48 billion a year ago.
“During the quarter, we completed our multi-year payments transition, and generated growth in both our advertising business and focus categories. As we continue to accelerate our strategy, we are well-positioned for future growth,” eBay Chief Executive Jamie Iannone said in a statement announcing the earnings.
Analysts surveyed by FactSet had expected net income of $1 a share on revenue of $2.6 billion.
But first-quarter guidance for revenue and earnings fell short of analyst forecasts. Ebay said it expects between $2.43 billion and $2.48 billion in revenue, while FactSet estimates $2.61 billion. The company expects earnings of between $1.01 and $1.05 a share, compared with $1.08 a share from FactSet.
EBay’s stock has declined 18% so far this year, while the broader S&P 500 index
is down 11%.