Slowing sales could hit eBay's revenue forecast
18 Oct 2012
Ahead of the critical months before holidays, slowing sales are taking a toll on eBay's revenue forecast.
The world's largest online marketplace projected a fourth-quarter revenue that could fall short of analysts' estimates amid the slackening pace of sales growth.
Revenue in the current quarter is expected to touch between $3.85 billion to $4 billion, according to eBay, as against an average analysts' projection of $3.94 billion. The company forecast profit, excluding some items, between 66 cents to 69 cents a share, as against a 68-cent estimate.
Comparable sales were up 21 per cent in September, less than the 24 per cent growth in August, according to ChannelAdvisor.
According to analysts EBay continued to lose market share to Amazon and other online retailers.
Meanwhile, the company reported strong results in the third quarter. Yesterday, eBay reported that net income was up $597 million or 45 cents a share, a 22 per cent surge from the quarter a year earlier. Revenue rose 15 per cent to $3.4 billion.
