Ebay 6.5% lower after hours; GMV, margins muted, holiday-quarter guidance uninspiring

|By:, SA News Editor

Ebay (NASDAQ:EBAY) reports Q3 gross merchandise volume of $20.1B (+3;, $20.3B estimated), revenue of $2.2B (+6%), EPS of $0.45 ($0.01 above estimates), net income from continuing operations of $509M, operating cash flow of $802M, free cash flow of $617M and share repurchases of $500M.

Operating margins declined to 29.9% (vs. 31.9% Y/Y), effective tax rate increased to 22.2% (vs. 20.2% Y/Y).

Projections: Q416 – net revenue of $2.36B-$2.41B (consensus $2.4B), EPS of $0.52-$0.54 (consensus $0.54); FY16 – net revenue of $8.95B-$9B, EPS of $1.85-$1.90

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