EBay Raises 3Q Guidance; Expects up to $150M in Restructuring Charges in 4Q

Dow Jones10-22

EBay boosted its third-quarter forecast though said it expects charges in the fourth quarter tied to recent layoff plans.

The e-commerce platform said Thursday it expects to report results for the quarter ended Sept. 30 above the guidance it had provided in August, which included projections for adjusted earnings per share of $1.36 to $1.42 on revenue of between $3.07 billion and $3.12 billion.

Analysts polled by FactSet expect third-quarter adjusted earnings of $1.41 a share on revenue of $3.11 billion.

EBay is scheduled to report quarterly earnings next week.

Looking ahead to the fourth quarter, eBay expects to incur pre-tax charges of $130 million to $150 million tied to its plans to lay off about 9% of its workforce.

The cuts, which mark the second round of layoffs at the company this year, aim to help eBay focus its resources on its top priorities, a company spokesperson said in a Wednesday statement.

The projected charges consist of severance payments and post-employment benefits, according to a filing with the Securities and Exchange Commission.

EBay expects to complete the restructuring plan by the end of the first quarter of 2027, and said it expects to put savings from the plan toward its strategic and operating initiatives.

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