(Reuters) – eBay beat Wall Street expectations for second-quarter revenue and profit, buoyed by robust demand for used goods, cost-effective auto parts and accessories.
However, the e-commerce giant’s third-quarter revenue forecasts fell short of analyst expectations, highlighting the effects of a tough economy.
The company’s strategic focus on specialty categories such as auto parts, collectibles and luxury accessories has proven resilient amid economic headwinds, leaving it facing stiff competition from Amazon.com (NASDAQ:) and China. Alibaba.com (NYSE:) Group holding company.
The positive second-quarter results come as consumers increasingly seek value-oriented options, refurbished goods and collectibles, despite high interest rates.
eBay trains generative AI models and is currently using them to sell fashion products. The company expects to further train the models to cover other categories, CEO Jamie Iannone said in a conference call after the earnings report.
While eBay’s (NASDAQ:) second-quarter revenue of $2.57 billion exceeded estimates, revenue expectations of $2.5 billion to $2.56 billion for the July-September period were largely below market expectations, according to LSEG -facts.
The forecast for current quarter adjusted earnings per share of $1.15 to $1.20 was above analyst estimates of $1.13.
Analysts expect the improving economic outlook for the year, with at least one interest rate cut and stronger consumer confidence, to boost sales of the e-commerce platform.
Excluding items, eBay reported earnings of $1.18 per share, compared with estimated earnings per share of $1.13.
Gross merchandise volume, a closely watched measure that reflects the total value of goods sold, rose 1% in the second quarter to $18.4 billion.
