eBay (EBAY) fell in pre-market trading, after the company reported a third quarter profit, issued its fourth quarter earnings guidance below consensus and cut its 2008 fiscal year outlook.
The stock was down 63 cents just before 9:00 am ET, dropping to $14.70. If pre-market losses hold, the stock will open at a new low.
eBay reported third-quarter net income of $492 million or $0.38 per share, compared to a loss of $936 million or $0.69 per share in the same quarter last year.
Non-GAAP net income was $592 million or $0.46 per share, compared to $564 million or $0.41 per share in the year-ago quarter. On average, 25 analysts polled by First Call/Thomson Financial expected earnings of $0.41 per share.
Net revenues for the quarter rose 12% to $2.12 billion from $1.89 billion in the comparable quarter a year-ago. Twenty-two Wall Street analysts' consensus revenue estimate came in at $2.13 billion.
eBay said that it continues to benefit from an increasingly diversified portfolio of businesses. While Marketplaces transaction revenue still represents a majority of revenue for the company, revenue growth rates were helped by growth in PayPal, Skype and global classifieds. The company's global footprint helped it benefit year over year from strength in other currencies relative to the U.S. dollar.
For the fourth quarter, eBay expects GAAP earnings in the range of $0.25 - $0.27 per share, non-GAAP earnings in the range of $0.39 - $0.41 per share and net revenues in the range of $2.020 billion - $2.170 billion. Analysts expect earnings of $0.47 per share on revenue of $2.43 billion.
In the fourth quarter of last year, the company earned $0.39 per share on a GAAP basis and $0.45 per share on non-GAAP basis.
For the full-year 2008, eBay now expects GAAP earnings in the range of $1.32 - $1.34 per share, non-GAAP earnings in the range of $1.69 - $1.71 per share and net revenues in the range of $8.525 billion - $8.675 billion. Analysts expect earnings of $1.73 per share on revenue of $8.94 billion.
Earlier, the company expected GAAP earnings in the range of $1.37 - $1.42 per share, non-GAAP earnings in the range of $1.72 - $1.77 per share and net revenues in the range of $8.8 billion - $9.05 billion.
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