EBay Earnings Match Expectations, Provides Disappointing Forecast

(RTTNews) - eBay (EBAY) reported quarterly earnings that dropped 28 percent last year, hurt by stagnant revenues, lower margins and a higher tax rate. The company also said currency rates hurt its results during the quarter.

Results for the quarter matched analysts' expectations, but the company gave a disappointing forecast for fiscal 2016.

eBay reported income from continuing operations of $523 million, or $0.43 per share. That was down from $729 million, or $0.59 per share, in the same period last year.

Excluding one-time items, the company's profit slipped to $600 million, or $0.50 per share, compared to $685 million, or $0.55 per share, in the same period last year. This matched the expectation of market analysts. A survey conducted by Thomson Reuters showed that experts had a consensus estimate of $0.50 per share.

Revenues for the quarter were basically flat with last year. The top line came in at $2.32 billion in both this year's fourth quarter and last year's fourth quarter. This also matched expectations.

Looking ahead, eBay predicted first-quarter earnings of $0.43 to $0.45 per share, excluding one-time items. Revenue is projected between $2.05 and $2.10 billion.

Both the top line and bottom line figures are below what market analysts were expecting. Experts were looking for the company to earn $0.48 per share in the first quarter on revenue of $2.16 billion.

For the full year, the company is looking for earnings of $1.82 to $1.87 per share, excluding one-time items. eBay projected full-year revenues of $8.5 billion to $8.8 billion. Meanwhile, analysts were looking for $1.98 per share on revenue of nearly $9 billion.