NEW YORK — A challenging overseas market is weighing on eBay's outlook for the second half of the year, sending shares lower in after-hours trading Wednesday even though the e-commerce bellwether's second-quarter results were roughly in line with Wall Street's expectations.
EBay shares fell $3.55, or 6.2 percent, to $53.83 in extended trading.
Revenue rose by 14 percent in the April-June period, as its PayPal business and namesake online marketplace continued to grow. But net income declined amid higher expenses.
The company's shares fell by about 6 percent to $53.95 in extended trading after the results came out on Wednesday. Though he called the quarter's results strong, CEO John Donahoe said economic weakness in Europe and Korea will "continue to be a challenge" in the second half of the year. The company kept its full-year guidance unchanged, but indicated that results may come in at the lower end of the expected revenue and profit range.
EBay Inc. earned $640 million, or 49 cents per share, in the April-June period. That's down 8 percent from $692 million, or 53 cents per share, in the same months a year earlier.
Adjusted to exclude one-time items, per-share earnings rose to 63 cents from 56 cents and matched Wall Street's expectations.
Revenue grew by 14 percent, to $3.88 billion from $3.4 billion. Analysts polled by FactSet expected $3.89 billion.
Donahoe said that eBay's core businesses — PayPal and its e-commerce sites — are going strong. PayPal, which has been the company's fastest-growing segment, added 4.7 million active registered accounts, ending the quarter with 132 million users.
