eBay Gives Investors Positive Q1 Surprise
It looks like eBay’s managing the recession and its other problems better than most people expected it to. The auction company issued its financial report on the first quarter of 2009 this afternoon, and although the numbers aren’t good compared to last year’s set, eBay did a solid job of beating analysts’ estimates.
Analysts thought eBay would report revenue in the range of $1.94 billion (down from $2.19 billion the same quarter last year). eBay’s sheets show a sum of $2.02 billion instead. As for eBay’s earnings per share, $0.34 was the forecast amount (compared to $0.42), and eBay reported $0.39.
CEO John Donahoe also said in a statement, "We . . . moved aggressively to strengthen our portfolio for longer-term growth. With a macroeconomic environment that remains challenging, we are focused on operating discipline and strong execution of our three-year growth priorities in our core ecommerce and online payments businesses."
Investors seem to be almost overjoyed, sending the eBay’s stock up 8.07 percent so far in after-hours trading.
Still, eBay does face some big challenges, including seller discontent and competition from Amazon. These issues may have contributed to its auction business declining by 18 percent (as measured in terms of revenue) since the first quarter of 2008.