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EBay ( EBAY ) beat Wall Street’s first-quarter earnings and revenue estimates, the company said Tuesday, and investors rewarded the online merchant with a mild share boost after the close. The San Jose-based online merchant reported adjusted earnings per share of 47 cents, two cents ahead of estimates from analysts polled by Thomson Reuters. EBay said revenue was $2.1 billion for the quarter, slightly ahead of the $2 billion view. In after-hours trading, eBay shares climbed more than 4% at one point to 25.49. But shares settled back to a 1.3% gain later in the afternoon as enthusiasm was tempered by the company’s earnings projection for the second quarter that was short of estimates. In the regular session eBay ended trading up 1.11% to 24.49. “It’s good that they had a beat on top and bottom,” Scot Wingo, chairman of e-commerce consultants ChannelAdvisor, told Investor’s Business Daily. “But what’s driving a lot of their growth, is not the traditional marketplace.” Of the total growth, Wingo said that the core marketplace accounted for only 3% — StubHub, the company’s event-ticketing platform, and its classified business made up the rest of the growth. EBay, once a major e-commerce force, has a ways to go to rival the likes of e-comm powerhouse Amazon.com ( AMZN ). “E-commerce is growing at 15%,” he said. “To really get the turnaround — we’re about halfway through an 18-month turnaround — it would be nice to see some data to see that it is taking hold.” For the second quarter of 2016, eBay said it’s expecting growth of 4% to 6%, or between $2.14 billion and $2.19 billion in sales. The company expects adjusted earnings per share of between 40 cents and 42 cents. Analysts see earnings of 44 cents a share on sales of $2.14 billion. As for eBay’s future prospects, Wingo said, “Historically they’ve gone through slow periods and then accelerated.” Scalper1 News
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