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EBay raises forecasts on online boom, shares hit record high

Published 06/04/2020, 11:10 AM
Updated 06/04/2020, 11:15 AM
© Reuters. FILE PHOTO: The eBay logo is pictured on a screen in this photo illustration in New York
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(Reuters) - EBay Inc (O:EBAY) raised its current-quarter revenue and profit forecasts on Thursday, as people stuck at home due to the COVID-19 pandemic ordered more through its online platform, sending its shares to a record high.

Soaring online demand has boosted performance of e-commerce companies as well as helped traditional retailers' businesses.

While Walmart (N:WMT) and Target (N:TGT), which also sell essential goods, recorded their best online sales in years, specialty retailers American Eagle (N:AEO) and Best Buy (N:BBY) sold more online as stores remained closed during lockdowns.

EBay said demand was strong across all its businesses, including home & garden, electronics, fashion and collectibles, with the company now expecting second-quarter gross merchandise volume growth rate to be between 23% and 26% from a year earlier.

The company said revenue in classifieds were performing at the high end of estimates. It said in February it was looking at multiple candidates for a potential sale of the unit.

EBay said its full-year performance will likely be above the range it forecast earlier. In April, it estimated full-year revenue between $9.56 billion and $9.76 billion.

It expects second-quarter revenue to be between $2.75 billion and $2.80 billion, compared with earlier estimates of $2.38 billion to $2.48 billion.

It also raised its adjusted profit forecast to between $1.02 and $1.06 per share from an earlier range of $0.73 to $0.80 per share.

© Reuters. FILE PHOTO: The eBay logo is pictured on a screen in this photo illustration in New York

Shares of the company rose as much as 11.6% to an all-time high of $51.88 in early trading.

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