(Reuters) -EBay exceeded Wall Street expectations for second-quarter revenue and profit, buoyed by robust demand for pre-owned goods, cost-effective automotive parts and accessories.
The e-commerce giant’s third-quarter revenue forecast, however, fell short of analysts’ estimates, signaling effects of a tough economy.
The company’s strategic focus on specialized categories, such as auto parts, collectibles, and luxury accessories, has proved resilient amid economic headwinds, helping it face stiff competition from Amazon.com and China’s Alibaba Group Holding.
The upbeat second-quarter results come as consumers increasingly seek value-oriented options, refurbished goods and collector’s items in the face of high borrowing rates.
EBay is training generative AI models and currently using them to sell fashion products. The company expects to train the models further to also cover other categories, CEO Jamie Iannone said in a post-earnings conference call.
While eBay’s second-quarter revenue of $2.57 billion surpassed estimates, its sales forecast between $2.5 billion and $2.56 billion for the July-September period was largely below market expectations, according to LSEG data.
The forecast for adjusted profit per share in the current quarter between $1.15 and $1.20 was above analysts’ estimates of $1.13.
Analysts expect the improving economic outlook for the year, having at least one interest rate cut and stronger consumer confidence, to boost the ecommerce platform’s sales.
Excluding items, eBay reported profit of $1.18 per share, compared with estimates of $1.13 in earnings per share.
Gross merchandise volume, a closely-watched metric that represents the total value of goods sold, rose 1% to $18.4 billion in the second quarter.
(Reporting by Akash Sriram in Bengaluru; Editing by Mohammed Safi Shamsi)
