EBay Inc’s EBAY.O quarterly profit topped Wall Street expectations on Wednesday and the e-commerce company forecast fourth-quarter sales above estimates, as people staying at home due to the COVID-19 pandemic took to online shopping.
EBay said it expects fourth-quarter revenue in the range of $2.64 billion to $2.71 billion, while analysts estimate $2.54 billion, according to IBES data from Refinitiv.
E-commerce firms and retailers with a strong online presence have witnessed a spike in demand as the COVID-19 pandemic has led more people to shop online.
The company raised its full-year sales outlook to between $10.04 billion and $10.11 billion. The forecast excludes the classifieds business, which eBay in July agreed to sell to Norway’s Adevinta ADEV.OL in a $9.2 billion deal.
EBay, which has made its platform simpler to use through grouped listings and personal recommendations, said active buyers grew 5% to 183 million in the third quarter.
Net income from continuing operations rose to $621 million, or 88 cents per share, for the third quarter ended Sept. 30, from $210 million, or 25 cents per share, a year earlier.
Excluding items, eBay earned 85 cents per share, above estimates of 77 cents per share.
Revenue rose about 25% to $2.61 billion, beating analysts’ average estimate of $2.48 billion. However, the company missed its prior revenue forecast of $2.64 billion to $2.71 billion.
Shares of the company fell nearly 2% at $52.24 in extended trade.