EBay Inc. reported fiscal fourth-quarter results on Tuesday, sending its stock on a 5.5% upswing in extended trading. The online marketplace delivered quarterly results that surpassed analysts’ estimates and issued strong guidance, alleviating concerns over its short-term business prospects. The e-commerce company also announced a dividend hike and a $2 billion stock repurchase program.
In the fiscal fourth quarter, eBay’s net income reached $728 million, or $1.07 per share, compared to $671 million, or $1.07 per share, in the same quarter a year ago. Revenue climbed to $2.56 billion from $2.51 billion in the year-ago quarter, exceeding analysts’ average net income and revenue expectations of $1.03 per share and $2.51 billion, respectively.
For the first quarter, eBay provided sales guidance of $2.5 billion to $2.54 billion, slightly above FactSet analysts’ forecast of $2.53 billion. Despite a 3% decline in eBay’s shares over the past year, analysts emphasized the company’s resilient performance in a competitive e-commerce market, particularly against Chinese sellers, Amazon.com Inc., and Walmart Inc.
The positive results come amid a challenging period for eBay. The company recently announced a plan to reduce its workforce by 9% and terminate its relationship with contractors, citing a business slowdown and a ‘challenging’ economy. eBay’s Chief Executive, Jamie Iannone, acknowledged that the company’s staff size and expenses had outpaced its business growth.
Overall, eBay’s strong financial performance and robust guidance have instilled confidence in the company’s ability to navigate through the competitive e-commerce landscape and economic challenges.
