San Jose, California-based e-commerce firm eBay published its financial results for the third quarter of the year. The company also announced that it has concluded an operating review. The review resulted in a plan to improve margins and reinvest in customer initiatives in the next three years.
A strategic review of its assets StubHub and its Classifieds business remains ongoing, eBay said, adding that it will update its shareholder on the StubHub division before the next earnings release.
During the quarter, eBay’s non-GAAP earnings were $0.67 on $2.65 billion revenue, flat on a year-on-year. Analysts projected earnings of $0.64 on $2.64 billion revenue. Despite the results, eBay’s shares fell slightly in after-hours trading on Wednesday.
In addition, in the period, the company said it returned $1.1 billion to shareholders.
“We performed in line with expectations in Q3 while improving the Marketplace experience, creating better customer outcomes, and maintaining momentum in advertising and payments,” eBay interim CEO Scott Schenkel said.
For the fourth quarter, the e-commerce company expects net revenue to be between $2.77 billion and $2.82 billion. Non-GAAP earnings per diluted share are expected to range between $0.73 and $0.76. For the full fiscal 2019, eBay foresees net revenue to stand between $10.75 billion and $10.80 billion.
For the same period, the company expects non=GAAP earnings per diluted share from continuing operations to be in the range of $2.75 to $2.78.
In March, eBay faced pressure from activist investors Elliott Management and Starboard Value. The activists pushed the company to restructure and sell assets, which led to a strategic review.
As part of the strategic review agreement with Elliott and Starboard, eBay added two independent directors to its board. In September, eBay’s CEO Devin Wenig announced he is leaving the company.
