EBay's first quarter earnings were solid relative to expectations, but the outlook for three months ending June 30 disappointed.
The e-commerce giant said that its second quarter revenue will be $2.15 billion to $2.2 billion with earnings excluding charges of 37 cents a share to 39 cents a share. Wall Street was expecting earnings of 40 cents a share on revenue of $2.21 billion.
For 2010, eBay projected revenue of $8.8 billion to $9.1 billion with non-GAAP earnings of $1.63 a share to $1.68 a share. Wall Street was looking for $1.67 a share on revenue of $9.12 billion (statement).
Simply put, the outlook wasn't that far off, but enough ding eBay shares after hours.
The outlook overshadowed a solid first quarter for eBay. The company reported earnings of $397.7 million, or 30 cents a share, on revenue of $2.2 billion, up 9 percent from a year ago. Like previous quarters, PayPal carried the quarter. Non-GAAP earnings were 42 cents a share, a penny better than expectations.
Add it up and eBay is a cash cow that's struggling to grow in its core business, but can juice growth with PayPal, which is a dominant platform.
By the numbers:
- Revenue for eBay's payment business---PayPal and Bill Me Later---reported first quarter revenue of $809.3 million, up 26 percent from a year ago.
- Marketplace revenue---eBay, Shopping.com and StubHub---had revenue of $1.4 billion, up 13 percent from a year ago. The company said that the marketplace turnaround is on track. And fixed-price sales showed momentum.