In a third quarter when it pursued operational changes, including in its marketplace function, eBay earnings beat Wall Street estimates.
For the third quarter, eBay posted income from continuing operations of $310 million, or 37 cents per diluted share, versus $720 million, or 73 cents per diluted share, in the year-earlier period. Adjusted income from continuing operations, excluding one-time charges, was $563 million, or 67 cents per diluted share, versus $554 million, or 56 cents per diluted share, in the year-prior quarter.
A MarketBeat-published analyst consensus estimate pegged adjusted earnings per diluted share at 64 cents for the quarter, handing eBay a three-cent beat.
Net revenues were $2.65 billion, flat with the quarter in the fiscal year before. Income from operations was $532 million versus $556 million in the year-previous quarter. Adjusted income from operations was $705 million versus $701 million in the period a year ago.
In the quarter, eBay noted that it introduced new tools and features to enhance the customer experience including Terapeak, a suite of features that helps sellers identify what to sell, when to sell and how to price inventory. eBay integrated Terapeak into Seller Hub in major markets. The company also introduced more seller protections, eBay pointed out, even as it continued enhancing the new buyer experience, and announced a Managed Delivery fulfillment service in the U.S. eBay also made multi-user account access available for sellers in the U.S., with a planned expansion to Germany set for 2020.
“We performed in line with expectations in the third quarter while improving the marketplace experience, creating better customer outcomes and maintaining momentum in advertising and payments,” said Scott Schenkel, eBay interim CEO. “We also made progress on our portfolio review and completed a thorough operating review that has resulted in a three-year plan to drive margin improvement while enabling reinvestment in critical customer initiatives.”