Ebay smashes analyst estimates across the board as lock-down proves fruitful

Ebay has smashed analyst estimates in its first quarter as it proves to be one of the few retailer companies benefiting from the global lock-down.

The online marketplace said sales in the three months to March 31 dropped two per cent to $2.4 billion (£1.93 billion), but this still came comfortably above analyst estimates of $2.34 billion (£1.88 billion).

Gross merchandise volume, the total value of all goods sold on its platform, hit $21.3 billion (£17.11 billion) during the quarter, again beating estimates of $20.5 billion (£16.47 billion).

Meanwhile it achieved earnings per share of 77 cents, compared to average analyst estimates of 73 cents.

Expectations were also surpassed in its outlook for the coming quarter, with Ebay stating it expected revenues over the peak months of the lock-down to come in at between $2.38 billion (£1.91 billion) and $2.48 billion (£1.99 billion), well above average expectations of $2.32 billion (£2.86 billion).

It added that during the quarter efforts to simplify its platform had led to a two per cent growth in active buyers to 174 million.

READ MORE: Ebay appoints Walmart executive Jamie Iannone as new CEO

Earlier this month Ebay appointed former Walmart chief operations officer Jamie Iannone as its new chief executive, taking the reins from interim chief executive Scott Shenkel, following the shock departure of David Wenig in September.

This marks the latest development in a period of significant change for the company, which has been pressured by activist investors Elliott Management and Starboard Value to review its business.

Last month it was reported that Starboard were pressuring Ebay to appoint an outsider as its new chief executive as a comprehensive search dragged on.

It also strong-armed Ebay to install four Starboard directors to its board arguing that it had been too slow to make changes to its chief executive and its classified ads business.

In March Ebay conceded to pressure from the pair and launched an in-depth strategic review of its business, pushing it to offload its ticket sale business StubHub and its classified-ads business and focus on its core marketplace offering.

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