eBay Stock Falls After Q2 Earnings - Here's Why

eBay Inc. EBAY shares are trading lower in Wednesday's after-hours session on the heels of the company's second-quarter report. Here's a rundown of the results and a look at what's driving the action.

What Happened: eBay reported quarterly earnings of $1.03 per share, which beat the analyst consensus estimate of $0.99, a 4.04% increase over earnings of 99 cents per share from the same period last year. The company reported quarterly sales of $2.54 billion, which beat the analyst consensus estimate of $2.51 billion, a 4.87% increase over sales of $2.42 billion in the same period last year.

Gross Merchandise Volume of $18.2 billion fell 2% on an as-reported basis and down 1% on an FX-Neutral basis.

The company issued guidance for third-quarter revenue between $2.46 billion and $2.52 billion, versus estimates of $2.23 billion. Earnings per share is estimated between 96 cents and $1.01, versus the estimate of 92 cents.

eBay generated $605 million of operating cash flow and $492 million of free cash flow from continuing operations during the second quarter of 2023.

"In Q2, we exceeded expectations on all key metrics while investing in sustainable growth," said Jamie Iannone, CEO at eBay. "Three years ago, I set our ambition of becoming the best global marketplace to buy and sell through a tech-led reimagination. Now, we're raising the bar for innovation and have evolved our vision – to reinvent the future of ecommerce for enthusiasts, only at eBay."

"This work is already producing compelling results, and we are confident the sharper focus will deliver long-term returns to our shareholders."

Related Link: Fluence Inks Deal To Bring Brazil's Psychedelic Therapy Training Scene To New Heights

EBAY Price Action: Shares of EBAY were down 4.51% at $46.60 during after-hours trading at the time of publication, according to Benzinga Pro.

Image by justynafaliszek from Pixabay