Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

eBay Inc. announced its sales forecast for the fourth quarter of the fiscal year, which missed initial analysts projections. The lower forecast comes as a result of the fact that the U.S.-based company is still recovering after it was hurt by a security breach, which affected customer growth.

The company made an official statement, revealing that its fourth-quarter revenue is expected to be in the range from $4.85 billion to $4.95 billion. eBay Inc. also stated that its profit before certain items will be between 88 and 91 cents per share. In comparison, the analysts expectations pointed to $5.16-billion sales and a profit of 91 cents a share.

The Chief Executive Officer of the company, Mr. John Donahoe, said in the statement, cited by the Financial Times: “Its growth is neither what we wanted nor what we expected.” As reported by CNet, Mr. Donahoe told analysts in a phone call after the company released its announcement: “Were going to try to do whats right for both businesses. The goal is to set each of these business up to succeed.”

The downward revision of the companys forecast comes amid fierce rivalry on the market and at a moment, when the company has just officially announced that it has decided to spin its PayPal unit off over the next year. Both the PayPal payments processing division and the companys core e-commerce business are to become independent and separately listed companies.

In addition, in May 2014 the company revealed that hackers managed to access some customers information on its e-commerce website after a data breach. The company is also facing difficulties, fighting with some search algorithms of Google, which are considered to have affected its ability to attract the attention of the worlds largest search engines users.

eBay Inc. was 0.69% down to close at $50.24 per share yesterday, marking a one-year decrease of 6.91%. The company is valued at $62.79 billion. According to CNN Money, the 37 analysts offering 12-month price forecasts for eBay Inc. have a median target of $62.00, with a high estimate of $68.00 and a low estimate of $50.00. The median estimate represents a +23.41% increase from the last price of $50.24.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Lufthansa shares plummet as biggest shareholder opposes €9 billion bailoutLufthansa shares plummet as biggest shareholder opposes €9 billion bailout Shares in Lufthansa dropped 5.7% in Monday trading as the biggest shareholder in the company disagreed with the terms of a €9 billion ($10 billion) bailout. If the rescue plan fails, this will put the biggest airline in Europe in serious […]
  • Forex Market: EUR/USD daily forecastForex Market: EUR/USD daily forecast During yesterday’s trading session EUR/USD traded within the range of 1.3785-1.3825 and closed at 1.3807.At 6:42 GMT today EUR/USD was gaining 0.17% for the day to trade at 1.3829. The pair touched a daily high at 1.3837 at 6:07 GMT, […]
  • Copper holds steady ahead of ADP dataCopper holds steady ahead of ADP data Copper marked little gain on Wednesday and remained mainly steady in expectation for the ADP data, scheduled for release later today. The ADP Employment Change indicator for May is supposed to surge to 165 000, up from 119 000 in the preceding […]
  • Forex Market: USD/CAD daily trading outlookForex Market: USD/CAD daily trading outlook Yesterday’s trade saw USD/CAD within the range of 1.3024-1.3139. The pair closed at 1.3051, falling 0.38% on a daily basis. It has been the 27th drop in the past 56 trading days. USD/CAD has eased its slump to 3.27% so far during the current […]
  • Tesco Plc share price down, investigates accounting practices and suspends four senior executivesTesco Plc share price down, investigates accounting practices and suspends four senior executives Tesco Plc started a probe over accounting practices and suspended four of its senior executives, including the chief of its operations in the U.K., after an employee signaled an overstatement of the companys first-half profit.Independent […]
  • Oil extends gains prior to reserves reportsOil extends gains prior to reserves reports Oil extended gains on Tuesday as analysts forecast a drop in Crude Oil Inventories ahead of APIs and EIAs weekly oil inventories reports due on Tuesday and Wednesday respectively. Prices also drew support as positive U.S. and EU data pointed […]