(Reuters) – eBay Inc beat Wall Street expectations on revenue and profit in the second quarter, helped by strong demand for used goods, auto parts and cost-effective accessories.
But the e-commerce giant’s third-quarter revenue forecast fell short of analysts’ estimates, pointing to the effects of a tough economy.
The company’s strategic focus on niche categories, such as auto parts, collectibles, and luxury accessories, has proven resilient amid economic headwinds, helping it weather intense competition from Amazon.com (NASDAQ:) and China. Ali Baba (NYSE:) Holding Group.
The upbeat second-quarter results come as consumers increasingly seek value-oriented options, refurbished goods and collectors’ items in the face of high borrowing rates.
eBay is training generative AI models and is currently using them to sell fashion products. The company expects to train more models to cover other categories as well, CEO Jamie Iannone said on a post-earnings conference call.
While eBay (NASDAQ:EBAY)’s second-quarter revenue of $2.57 billion beat estimates, its sales forecast of $2.5 billion to $2.56 billion for the July-September period was significantly below market expectations, according to LSEG data.
Adjusted earnings per share for the current quarter were expected to be between $1.15 and $1.20, above analysts’ estimates of $1.13.
Analysts expect an improved economic outlook for this year, with at least one interest rate cut and a boost in consumer confidence, to boost sales at the e-commerce platform.
Excluding items, eBay reported earnings of $1.18 per share, compared with estimates of $1.13 per share.
Gross merchandise volume, a closely watched measure of the total value of goods sold, rose 1% to $18.4 billion in the second quarter.