EBay Inc. (NASDAQ: EBAY) on Wednesday reported first-quarter revenue and profit that beat analysts’ estimate. But the company provided a soft profit guidance for second quarter, sending its shares down more than 2 percent.
The company said it now expects adjusted profit of 43-45 cents per share for the second quarter. Analysts’ polled by Thomson Reuters had project second quarter profit to be 47 cents per share.
The company said the forecast is affected by “increased investment to drive improved user experiences and to market our brand,"
For the first quarter. EBay said net income rose to $1.04 billion, or 94 cents per share, compared with $482 million, or 41 cents per share, a year earlier. Excluding certain items, the company earned 49 cents per share.
Revenue rose 3.7 percent to $2.22 billion, beating analysts’ estimate of $2.21 billion.
"The first quarter was a strong start to the year with accelerating growth in active buyers, revenue and our core U.S. business," said Devin Wenig, President and CEO of eBay Inc. "We are on the right path as we continue to evolve our shopping platform for consumers, leverage our technology advantages and market a sharpened eBay brand globally."
EBay shares fell 2.76 percent to $32.92 per share in the early trading in New York.