EBay 1st-qtr profit, sales fall on weak economy

April 22, 2009 By RACHEL METZ , AP Technology Writer

(AP) -- EBay Inc. said Wednesday the weak economy contributed to declines in both earnings and revenue for the second consecutive quarter, but the online marketplace operator beat analysts' expectations.

The results helped shares shoot up $1.03, or 6.9 percent, in after-hours trading, after rising 49 cents, or 3.4 percent, to finish regular trading at $14.78.

They show the San Jose, Calif.-based company still struggling, though - both with the and its efforts to improve its online marketplace.

EBay earned $357.1 million, or 28 cents per share, in the first quarter, down 22 percent from $459.7 million, or 34 cents per share, in the year-ago period.

When excluding items, eBay said it earned 39 cents per share; analysts polled by Thomson Reuters expected 33 cents per share.

Revenue fell 8 percent to $2.02 billion, just above analysts expectations of $1.94 billion.

Revenue from eBay's marketplaces segment - which includes eBay itself and e-commerce sites such as StubHub and Shopping.com - fell almost 18 percent to $1.22 billion. The company blamed the drop on the difficult economy and the strengthened dollar. EBay got about 54 percent of its marketplaces revenue from outside the United States, and deals done in other currencies translate into fewer dollars when the dollar is strong.

For eBay's payments segment, which is the second-largest business behind marketplaces and includes online , revenue climbed nearly 11 percent to $643 million.

The company's number of active users grew 2 percent to 88.3 million in a sign of the company's success in attracting new buyers and sellers.

But eBay's gross merchandise volume - a key metric that measures the total amount of money that flows from transactions on the site, excluding those involving vehicles - fell 16 percent to $10.8 billion. This metric also declined in the previous quarter.

As in the previous quarter, 51 percent of the eBay's gross merchandise volume came from auctions in the first three months of 2009. The remainder came from sale of products at fixed prices.

For the current quarter ending in June, expects a profit of 23 cents to 26 cents per share, or 34 cents to 36 cents per share when excluding items. The company is also expecting revenue of $1.85 billion to $2.05 billion. Analysts' expectations were within that range - adjusted earnings of 35 cents per share on $1.98 billion in revenue.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Dell lowers earnings expectations

Related Stories

National Semiconductor to cut 1,725 jobs

March 11, 2009

(AP) -- Faced with a steep decline in sales, chip maker National Semiconductor Corp. said Wednesday it will eliminate more than one-quarter of its work force, or 1,725 jobs.

EBay's PayPal envisions doubling in size by 2011

March 11, 2009

(AP) -- EBay Inc.'s name may conjure images of online auctions, but the company is hoping to turn attention to its second-largest business - PayPal - which it expects to blossom significantly in the next few years.

Oracle manages 3Q feat: healthy contract signings

March 18, 2009

(AP) -- Oracle Corp.'s sales force pulled off a big feat in the business software maker's latest quarter, sustaining a healthy clip of contract signings amid a dreary time for technology spending.

TI profit, revenue tumble on shrinking demand (Update)

April 20, 2009

(AP) -- Texas Instruments Inc. said Monday that first-quarter profit and revenue tumbled as competition heightened and demand for its chips shrank amid the recession, but the results still beat the company's own expectations ...

Recommended for you

The ethics of robot love

November 25, 2015

There was to have been a conference in Malaysia last week called Love and Sex with Robots but it was cancelled. Malaysian police branded it "illegal" and "ridiculous". "There is nothing scientific about sex with robots," ...

Tandem solar cells are more efficient

November 23, 2015

Stacking two solar cells one over the other has advantages: Because the energy is "harvested" in two stages, and overall the sunlight can be converted to electricity more efficiently. Empa researchers have come up with a ...


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.