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EBay beats quarterly profit estimates, forecasts current-quarter sales above expectations

FILE PHOTO: The eBay logo is pictured on a screen in this photo illustration in New York, U.S., July 23, 2019. REUTERS/Brendan McDermid/Illustration/File Photo

(Reuters) - EBay Inc's EBAY.O quarterly profit topped Wall Street expectations on Wednesday and the e-commerce company forecast fourth-quarter sales above estimates, as people staying at home due to the COVID-19 pandemic took to online shopping.

EBay said it expects fourth-quarter revenue in the range of $2.64 billion to $2.71 billion, while analysts estimate $2.54 billion, according to IBES data from Refinitiv.

E-commerce firms and retailers with a strong online presence have witnessed a spike in demand as the COVID-19 pandemic has led more people to shop online.

The company raised its full-year sales outlook to between $10.04 billion and $10.11 billion. The forecast excludes the classifieds business, which eBay in July agreed to sell to Norway's Adevinta ADEV.OL in a $9.2 billion deal.

EBay, which has made its platform simpler to use through grouped listings and personal recommendations, said active buyers grew 5% to 183 million in the third quarter.

Net income from continuing operations rose to $621 million, or 88 cents per share, for the third quarter ended Sept. 30, from $210 million, or 25 cents per share, a year earlier.

Excluding items, eBay earned 85 cents per share, above estimates of 77 cents per share.

Revenue rose about 25% to $2.61 billion, beating analysts’ average estimate of $2.48 billion. However, the company missed its prior revenue forecast of $2.64 billion to $2.71 billion.

Shares of the company fell nearly 2% at $52.24 in extended trade.

Reporting by Akanksha Rana in Bengaluru; Editing by Vinay Dwivedi

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