eBay Q3 Gains Reflect Strategic Initiatives

For the third quarter, eBay earnings beat a Wall Street estimate and revenues grew as the company asserted that the gains reflected its strategic initiatives.

Third quarter net income from continuing operations was $621 million, or 88 cents per diluted share, versus $210 million, or 25 cents per diluted share, in the year-earlier period.

Adjusted for one-time events, net income from continuing operations was $604 million, or 85 cents per diluted share, versus $435 million, or 52 cents per diluted share, in the year-prior quarter. eBay beat a Zacks Investment Research analyst consensus estimate of 76 cents per adjusted diluted share for the period.

Net revenues were $2.61 billion versus $2.08 billion in the quarter a year before. Income from operations was $679 million versus $408 million in the period a year previous. Adjusted operating income was $799 million versus $557 million in the 2019 quarter.

Gross merchandise volume was $25 billion, up 22% on an as-reported basis and up 21% on a foreign exchange  neutral basis in the period year over year, eBay pointed out.

Jamie Iannone, eBay CEO, said, “On an apples to apples basis, we delivered results that exceeded expectations on both the top and bottom lines. Our third quarter performance reflects the strength of our newly focused strategy coupled with the enormous untapped potential of our marketplace. As we continue our multi-year journey to become the best global marketplace to buy and sell, I am proud of the progress our team is making toward our tech-led reimagination.”

In a conference call, Iannone said the company is applying technology to initiatives including verification services for high-end goods and making it easier and more efficient for small businesses to use eBay as a selling platform.