EBay forecasts first-quarter revenue above estimates

(Reuters) - Ecommerce company EBay Inc on Wednesday forecast first-quarter revenue above Wall Street estimates on hopes that cost-conscious shoppers would be attracted towards its used and refurbished product category in the face of a looming recession. 

 

Shares of the San Jose, California- based company rose nearly 2% in trading after the bell.

 

The company forecast current-quarter revenue between $2.46 billion and $2.50 billion. Analysts are expecting $2.37 billion. 

 

Ebay’s innovation, which includes a shift to expanded categories of collectibles, refurbished products as well as luxury goods such as watches, handbags and sneakers is helping it to drive sales at a time when economic uncertainty is weighing on most businesses. The company has also raised its game by investing in motors parts and accessories.

 

However, gross merchandise volume (GMV), a widely watched figure for the e-commerce industry’s performance, fell 12% to $18.2 billion in the fourth quarter.

 

EBay posted revenue of $2.51 billion for the quarter ended Dec. 31, compared with analysts’ estimate of $2.47 billion, according to Refinitiv IBES data.

 

Net income fell to $672 million, or $1.23 per share for the Sept-Dec period, from $1.97 billion, or $3.25 per share, a year earlier. 

 

(Reporting by Tiyashi Datta in Bengaluru; Editing by Shailesh Kuber)