eBay Inc (NASDAQ: EBAY) stock fell over 8.2% in the pre-market session on July 19th, 2018 (Source: Google finance) after the company posted mixed results for the second quarter 2018. During the second quarter, the company continued to build on the structured data efforts including the new product based commerce experience. EBAY have added 12 product lines representing roughly 3% of GMV to a fully product based experience and the company plans to expand this to more branded high velocity products in the second half. The company is further scaling product based commerce, Guaranteed Delivery and the new C2C selling flow while launching a series of innovative new buyer experiences. At the same time, we are stopping work on less critical projects that are not moving the needle or are more speculative.
EBAY in the second quarter of FY 18 has reported the adjusted earnings per share of 53 cents, beating the analysts’ estimates for the adjusted earnings per share of 51 cents, according to Thomson Reuters. The company had reported the adjusted revenue growth of 9.1 percent to $2.64 billion in the second quarter of FY 18, missing the analysts’ estimates for revenue of $2.66 billion.
Moreover, the total GMV was up 7% and active buyers grew 4%. Due to the addition of buyers from the recent acquisition in Japan, EBAY has now have 175 million active buyers. GMV in the Marketplace platform grew at 7% year on year with U.S. Marketplace GMV growing at 6% while international GMV grew 7%.
The company in April had forcasted $10.9 billion to $11.1 billion in sales for the year 2018. Sales is expected to be in the range of $2.64 billion to $2.69 billion in the third quarter, while analysts were projecting $2.73 billion. Quarterly earnings per share, excluding some costs, are projected to be in the range of54 cents to 56 cents, compared with analysts’ average estimate of 56 cents.
Additionally, EBAY has repurchased nearly $1 billion and returned nearly $1 billion to the shareholders through the share repurchase program.
Meanwhile, EBAY is laying off 274 of its workers on a permanent basis, most of which are positions in its San Jose headquarters. As of late 2017, eBay has about 14,100 workers around the world. The decision had come after the company’s June announcement that it was cutting 200 positions in the U.S