EBay forecasts fourth-quarter results below estimates on weak consumer spending By Reuters

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<span>© Reuters. The eBay app is seen on a smartphone in this illustration taken, July 13, 2021. REUTERS/Dado Ruvic/Illustration</span><br />
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<p>(Reuters) &#8211; Ebay forecast fourth-quarter revenue and profit below Wall Street estimates on Tuesday and joined other e-commerce platforms in sounding the alarm on weaker-than-expected consumer spending.</p>
<p>San Jose, California-based eBay (NASDAQ:)&#8217;s shares were down about 6.8% in trading after the bell.</p>
<p>High interest rates and stubborn inflation across major economies in Europe as well as in the United States have further eaten into consumers&#8217; discretionary budgets.</p>
<p>Rising competition from the likes of Amazon (NASDAQ:), that sells a lot of consumer staples, has amplified eBay&#8217;s woes.</p>
<p>&#8220;We&#8217;ve observed softening consumer trends to date in Q4 and particular challenges in Europe, suggesting we may see a more muted seasonal uptick over the holidays,&#8221; CEO Jamie Iannone said on a post-earnings call.</p>
<p>While U.S. online sales are expected to rise 4.8% in the crucial holiday season between Nov. 1 and Dec. 31, eBay faces stiff competition to attract traffic.</p>
<p>Analysts at Jefferies said earlier this month that web traffic on eBay continues to decline, with data showing a worsening trend through July to October this year.</p>
<p>&#8220;EBay&#8217;s results are consistent with other companies we have seen in e-commerce including Amazon and Etsy (NASDAQ:), which reflect a very challenging environment for discretionary spending,&#8221; D.A. Davidson &amp; Co analyst Tom Forte said.</p>
<p>EBay forecast current-quarter revenue in the range of $2.47 billion to $2.53 billion, compared with estimates of $2.60 billion, according to LSEG data.</p>
<p>The company also expects current-quarter adjusted profit per share in the range of $1 to $1.05, compared with estimates of $1.04.</p>
<p>Third-quarter revenue rose 5% to $2.50 billion, in line with Wall Street expectations, as the company saw an uptick in demand for refurbished goods.</p>
<p>On an adjusted basis, eBay earned $1.03 per share, compared with estimates of $1. </p>
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