eBay Misses Q4 Revenue, Guidance Light (EBAY)

We saw this coming: Traffic to eBay (EBAY) has been falling sharply since last year, and revenue at eBay’s Marketplaces unit (just about everything but Paypal and Skype) has been falling along with it, down 16% y/y according to eBay’s earnings report.

Weakness at ebay.com dragged down total revenue to $2.04 billion, down 7% y/y and below consenus estaimates of $2.12 billion. Smaller units helped eBay hit EPS targets despite the shortfall: Payments (Paypal) earned $623 million in revenue, up 11% y/y, and Communications (Skype) pitched in $145 million, up 26%.

Shares in eBay were down 5% after hours.

Key stats:

Q4 Revenue: $2.04 billion, vs $2.12 billion consensus
Q4 EPS: $0.41, vs $0.39 consensus

Q1 Revenue guidance: $1.8 to $2.05 billion, vs $2.1 billion consensus
Q1 EPS guidance: $0.32 to $0.34, vs $0.40 consensus

See Also: eBay Traffic Plummeting

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.