EBay's stock sinks after in line profit, and slight miss on revenue

Shares of eBay Inc. sank 2.9% in after-hours trade Wednesday, after the online marketplace reported and in-line profit and revenue that came up a bit shy, and provided a somewhat downbeat outlook. Net income fell to $407 million, or 40 cents a share, from $1.04 billion, or 94 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 53 cents, matching the FactSet consensus. Revenue rose to $2.58 billion from $2.30 billion, but missed the FactSet consensus of $2.59 billion, as marketplace revenue growth of 11% to $1.79 billion was shy of the FactSet consensus of $1.82 billion but the StubHub revenue rise of 12% to $231 million topped expectations of $227 million. Gross merchandise volume increased 13% to $23.6 billion, above the FactSet consensus of $23.1 billion. Looking ahead, the company expects second-quarter adjusted EPS of 52 cents, compared with expectations of 52 cents, and revenue of $2.64 billion to $2.68 billion, compared with expectations of $2.68 billion. EBay affirmed its full-year profit and revenue outlook. The stock has climbed 8.6% year to date through Wednesday's regular session close, while the S&P 500 has slipped 1.3%.