EBay forecasts fourth-quarter results below estimates on weak consumer spending
(Reuters) -E-commerce platform eBay (NASDAQ:EBAY) forecast fourth-quarter revenue and profit below Wall Street estimates on Tuesday as rising competition from the likes of Amazon (NASDAQ:AMZN) amplify the hit from softer consumer spending due to sticky inflation.
EBay's shares were down about 6% in trading after the bell.
High interest rates and stubborn inflation across major economies in Europe as well as in the United States have further eaten into consumers' discretionary budgets.
Analysts at Jefferies said earlier this month that web traffic on eBay continues to decline, with data showing a worsening trend through July to October this year.
«EBay's results are consistent with other companies we have seen in e-commerce including Amazon and Etsy (NASDAQ:ETSY), which reflect a very challenging environment for discretionary spending,» D.A. Davidson & Co analyst Tom Forte said.
While U.S. online sales are expected to rise 4.8% in the crucial holiday season between Nov. 1 and Dec. 31, eBay faces stiff competition to attract traffic.
EBay forecast current-quarter revenue in the range of $2.47 billion to $2.53 billion, compared with estimates of $2.60 billion, according to LSEG data.
The company also forecast current-quarter adjusted profit per share in the range of $1 to $1.05, compared with estimates of $1.04.
Revenue in the third quarter rose 5% to $2.50 billion, in line with Wall Street expectations.
On an adjusted basis, eBay earned $1.03 per share, compared with estimates of $1.
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