EBay delivered quarterly earnings and revenue that surpassed analysts’ estimates on Tuesday, but its second-quarter guidance came in light of expectations.
The firm forecast second-quarter per-share earnings between 67 cents and 69 cents, shy of the 70 cents per share expected by Wall Street.
The company also said it absorbed a tax charge of about $3 billion taken because they brought home $9 billion of foreign earnings that were not previously subject to U.S. tax. The move is expected to increase the company’s available U.S. cash by some $6 billion.
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EBay reported first-quarter earnings of 70 cents a share on revenue of $4.26 billion.
Analysts had expected the company to report earnings excluding items of 67 cents a share on $4.23 billion in revenue, according to a consensus estimate from Thomson Reuters.
Revenue generated from the company’s PayPal unit climbed to $1.8 billion as the service added 5.8 million new active users in the quarter.
Earlier this month, billionaire investor Carl Icahn, who owned more than 2 percent of eBay as of April 10, backed off calls for it to spin out its fast-growing PayPal payments unit, having failed to drum up support from the e-commerce company’s major shareholders.
The settlement caps a months-long acerbic war of words and marked a reversal for Icahn, who had accused eBay Chief Executive John Donahoe of “inexcusable incompetence” and attacked the company’s board repeatedly for shoddy governance.
Donahoe, who has been CEO since 2008, expressed relief the potentially bruising and distracting proxy fight had ended.
Reuters contributed to this report.