Live news: US trade deficit widens to record $109.8 billion
Ebay and Etsy offered weaker outlooks for the coming months, leading to a sell-off in shares of the two online marketplaces.
Both companies on Wednesday said they were experiencing “headwinds,” with Etsy pointing to issues related to consumer discretionary spending, coronavirus-related reopenings and other events. geopolitical event.
Ebay said it expects second-quarter revenue to fall 7-9% from a year ago to $2.35-2.4 billion and adjusted earnings of 87 to 91 cents a share. . That’s below forecasts for more than $2.5 billion in revenue and $1.01 per share earnings given by analysts in a Refinitiv survey.
The company also cut its full-year guidance to below market expectations and forecast revenue of $9.6-9.9 billion and adjusted earnings of $3.90-$4.10 per share. .
Etsy was in a similar situation. It forecast revenue of $540 million to $590 million for the second quarter, below Wall Street’s forecast of about $628 million.
In after-hours trading, Ebay shares fell 6.3% and Etsy fell 9.5%.
For Ebay and Etsy, the weaker outlook weighed on first-quarter revenue performance that was slightly higher than Wall Street forecasts. But they also reinforced concerns that the boost companies enjoyed during the pandemic, as domestic consumers increased their online shopping, had waned.
eBay’s $2.48 billion in net sales for the first three months of the year fell slightly more than market expectations, while adjusted earnings of $1.05 a share were 2 cents higher. compared to forecast. Etsy’s $579.2 million in revenue was up nearly $4 million from forecasts, but net income of $86.1 million was about $3.6 million below Wall Street expectations.