EBay Inc.'s (EBAY) All-Round Show Drives Q3 Earnings Beat
Zacks Investment Research | Oct 19, 2016 10:51PM ET
eBay Inc. (NASDAQ:EBAY) delivered strong third-quarter 2016 results, surpassing the Zacks Consensus Estimate on both metrics.
Earnings of 38 cents per share came ahead of the Zacks Consensus Estimate of 36 cents per share. Adjusted earnings per share exclude one-time items but include stock-based compensation expense.
Revenues were $2.22 billion compared with the Zacks Consensus Estimate of $2.18 billion.
The results were driven by continuous strong performance across Marketplace, StubHub and Classifieds.
eBay added 1 million active buyers in the third quarter taking the total to 165 million.
Management sounded upbeat about the pace of building a solid foundation of structured data and artificial intelligence, increasing personalizing capacities and enhancing mobile experience.
In the quarter, eBay acquired Corrigon Ltd., which it expects will contribute significantly to its Marketplace platform's structured data initiative. The company also closed the acquisitions of Ticket Utils and TicketbiS that are expected to improve seller tools. The company added Qualcomm (NASDAQ:QCOM), Mattel (NASDAQ:MAT), Fender and Magic Chef to its strategic brand partner’s list to attract more customers to its online properties.
The company has also been very active with product launch. It rolled out curated experiences in Fashion, Home and Garden and eBay ShopBot on Facebook Messenger for a better user experience.
StubHub rolled out a combined primary and secondary ticket experience for the Philadelphia 76ers, and enabled users to obtain support through a Skype chatbot. Seller hub continues to drive more engagement from consumer sellers.
eBay has also sold most of its stake in MercadoLibre, Inc., a move that is expected to realize considerable gain on investment.
eBay’s unique capabilities backed by technological improvements give it an edge over competitors such as Etsy (NASDAQ:ETSY) , Alibaba (NYSE:BABA) and Facebook (NASDAQ:FB) .
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