EBay expects its current quarter revenue to be above Wall Street projections after beating its March-quarter earnings estimates.
The US ecommerce giant has cited its strategy of focusing on product categories including trainers and watches as one of the reasons for the positive outlook.
It also pushed on items such as collectibles and refurbished products, helping it drive sales at a time when consumer spending has slowed off the back of high inflation.
“There remains a dynamic and uncertain macro economic environment across the globe with inflation and rising interest rates and pressured consumer confidence … but our focus categories remain relatively resilient,” chief executive Jamie Iannone said in an interview.
The positive results are likely to soothe investor sentiment after a period of shakiness due to eBay saying that demand weakness will continue in the first interim of 2023.
EBay shares rose 5% in after-hours trading.
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The company is currently expanding listings under refurbished electronics, luxury bags and watches, and the collectibles category.
It also purchased the trading cards marketplace TCGplayer last year.
June-quarter revenue is now expected to be in the range $2.47bn to to $2.54 billion, higher than analysts’ projection of $2.43 billion, according to Refinitiv data.
Revenue in the March quarter grew 1% to $2.51bn, trumping analysts’ estimate of $2.48bn. Meanwhile, adjusted earnings per share of $1.11 also came in higher than estimate of $1.07.
Gross merchandise volume (GMV) fell 5% to $18.4bn.
Running Point Capital Advisors chief investment officer, Michael Ashley Schulman told Reuters: “eBay seems to be gaining its original innovative mojo with improved payment, marketing, storage, user interface, and authentication.
“Yet their potential earnings growth and turnaround capabilities don’t seem to be baked into the stock price.”
