eBay has raised its second quarter (Q2) earnings outlook on better-than-expected results during the COVID-19 pandemic.
The California-based eCommerce company said it expects Q2 revenues in a range of $2.75 billion to $2.8 billion and adjusted earnings per share of $1.02 to $1.06, compared to its April guidance of 73 cents to 80 cents and revenue in the range of $2.38 billion to $2.48 billion, eBay said. Gross merchandise volume growth of 23 to 26 percent is anticipated for the quarter as all of its sectors are improving.
“All major verticals are accelerating significantly compared to previous quarters, including home and garden, electronics, fashion, auto parts and collectibles,” eBay said in a statement. “Demand strength is driven by increased organic traffic, better marketing efficiency, and higher platform conversion.”
Tens of thousands of small business sellers have joined the platform since March as most retailers remain shuttered, eBay said. In addition, 6 million new and reactivated buyers were added in April and May.
“Classified revenues are performing at the high end of previous expectations disclosed on the Q1 earnings call with automotive subscription revenues recovering as dealerships reopen across international markets,” the company said.
PYMNTS reported eBay’s Q1 revenue of $2.37 billion was below analysts’ estimates of $2.38 billion. Operating income for the quarter was $485 million, down 6 percent year over year from $516 million.
The report noted classifieds were off by 3 percent from 2019.
The Q1 earnings announcement was the first for new CEO Jamie Iannone, who was previously operating chief of Walmart eCommerce.
“Over the past several months, we have remained focused and clear-eyed about the strategic direction of the company and have driven substantial changes to position the business for sustainable and profitable long-term growth,” said interim CEO Scott Schenkel at the time.