On Wednesday eBay Inc (NASDAQ:EBAY) declared an unsatisfactory holiday estimate, the company has revealed that its U.S. economic environment, as well as consumer confidence, had decline in part due to shutdown of the government.
Bob Swan Chief Financial Officer of the company has informed that the e-commerce industry growth pace had decrease to approximately 13% in the third quarter, as compare to approximately 16% in last quarter. He also added the company in fact hasn’t noticed any further positive indication for October.
Initially in yesterday, the U.S. Senate leaders declared the negotiation at that day will open the government, but it only resulted in a deal that only facilitate government till January 15, so the people of the country will encounter another shutdown.
John Donahoe, Chief Executive of the company has said the firm didn’t until weeks from now, and the firm expects this deal sticks, he replied to this when asked about the inconsistency would raise mood of shoppers.
Due to this shutdown U.S. shoppers were cautious particularly the data from last week and September sales in retailer industry shows, revealed by ShopperTrak. The data firm also said this holiday season will be the slowest holiday sales growth since 2009, and this will also lead to disappointing second quarter for many retailers.
According to an industry group, Conference Board, in late September released report that in last month the consumer confidence decrease to its lowest since May.
While the company estimate say that its revenue fall between $4.5 billion to $4.6 billion in Q4 of the company ending December 31, in contrast to $4.64 billion predicted by Thomson Reuters analysts. And for the holiday quarter, the company predicts a profit from 79 cents on each share to 81 cents on each share, but analysts at Wall Street predicted a profit of 83 cents on each share.
The company third quarter net income was increased 53 cents on each share to $689 million, in contrast to 45 cents on each share, same period last year. The company earned 64 cents, one cent increase than estimated, while revenue increased 14.3% to $3.89 billion. eBay Inc (NASDAQ:EBAY) shares dropped -0.83% to $53.52 in last trading session.
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