* EBay CFO says European economy is weaker
* Weaker British pound to dent PayPal results
* Investments to spur growth in second half of 2013-CFO
By Alistair Barr
SAN FRANCISCO, April 17 EBay Inc on
Wednesday gave a disappointing earnings forecast for the second
quarter and said Europe was weak, pushing its shares lower in
The e-commerce company forecast a second-quarter profit of
61 to 63 cents per share and revenue of $3.8 billion to $3.9
Analysts were looking for 66 cents a share on revenue of
$3.95 billion, according to Thomson Reuters I/B/E/S.
Late last month, eBay set aggressive three-year growth
targets, based on international expansion plans and more focus
on mobile commerce.
The company is investing heavily in these initiatives and
such spending may be behind the weaker second-quarter profit
forecast, said R.J. Hottovy, an equity analyst at Morningstar.
"These investments are building for the future so that
should be taken positively, even if they come at the expense of
short-term profits," Hottovy added, while noting that eBay's
full-year 2013 forecasts remained unchanged.
EBay Chief Financial Officer Bob Swan said the company
expects Europe's economy to be weaker this year, compared with
its expectations in January.
UK traffic to eBay websites has been slower and weakness in
the British pound will dent PayPal's revenue and take rate this
year, Swan also said, during a conference call with analysts.
Still, the CFO also said eBay expects the second half of
2013 to improve as investments the company is making now in
international expansion, mobile technology and other initiatives
start to pay off.
EBay shares fell 2.9 percent to $54.45 in after-hours
trading on Wednesday.
The company also reported earnings of $829 million, or 63
cents per share, for the first quarter, compared with $725
million, or 55 cents a share, in the same period last year.
Revenue was $3.75 billion, up from $3.28 billion a year earlier.
EBay was expected to earn 62 cents a share in the first
quarter on revenue of $3.76 billion, according to Thomson