eBay beats revenue estimates, bucks slowdown in consumer spending

EBAY surpassed estimates for second-quarter earnings and maintained its annual sales forecast, sending its shares up 4 per cent and allaying some investor concerns over the outlook for online shopping as consumer spending shrinks.

The e-commerce firm's results contrast that of brick-and-mortar retailers Walmart and Target, which had warned of slowing discretionary spending as inflation-hit Americans save their dollars for gas, food and other essentials.

"Our focus category strategy is working, and payments and advertising are driving further growth," said eBay chief executive Jamie Iannone.

Revenue declined 9 per cent to US$2.42 billion in the quarter ended Jun 30, but came in higher than analysts' estimates of US$2.37 billion, according to IBES data from Refinitiv.

Excluding items, the company earned 99 US cents per share, higher than expectations of 89 US cents.

For the current quarter, eBay forecasts revenue between US$2.29 billion and US$2.37 billion, also above estimates of US$2.30 billion. REUTERS