eBay took a 23% hit to net income in its fiscal Q1

eBay Inc (NASDAQ: EBAY) is in the red in extended hours today even though it came in ahead of Street estimates for its fiscal Q1.

eBay stock down on muted guidance

The stock is taking a hit primarily because the management failed to impress with its guidance. $EBAY now forecasts its revenue to fall between $2.49 billion and $2.54 billion on up to $1.15 of per-share earnings.

Analysts, in comparison, were at $2.56 billion and $1.14, respectively. Jamie Iannone – the chief executive of eBay Inc said in a press release today:

The eCommerce giant returned $638 million to its shareholders in its recently concluded quarter in the form of dividend payments and stock buybacks. eBay stock is up close to 20% versus its year-to-date low at writing.

eBay Q1 earnings snapshot

• Earned $439 million versus the year-ago $569 million
• Per-share earnings also declined from $1.05 to 85 cents
• Adjusted EPS printed at $1.25 as per the earnings report
• Revenue inched up 2.0% year-over-year to $2.56 billion
• Consensus was $1.20 a share on $2.53 billion in revenue

eBay noted a 1.0% annualised growth in its gross merchandise volume to $18.6 billion in Q1. CEO Iannone also said on Wednesday:

Wall Street currently has a consensus "hold" rating on eBay stock.