EBay Beats Quarterly Earnings Estimates on Steady Demand for Refurbished Goods | WTAQ News Talk | 97.5 FM 1360 AM

(Reuters) – E-commerce company eBay beat Wall Street expectations for second-quarter revenue and profit on Wednesday, thanks to continued demand for refurbished goods and affordable auto parts.

High interest rates have forced consumers to opt for cheaper second-hand goods, car parts and accessories that are widely available on eBay, making the e-commerce platform stronger in the fierce competition in online retail.

In recent years, eBay has repositioned itself as the go-to marketplace for collectibles, used electronics and auto parts, as Amazon.com and China’s Alibaba Group Holding gain a larger share of the e-commerce market.

Shares of eBay rose 1.4% in after-the-bell trading after rising 27.5% this year.

To combat the tough economy and fierce competition, eBay is focusing on so-called “focus categories” such as auto parts, collectible cards, handbags and watches, which it uses to target enthusiastic buyers.

Revenues for the April-June period were $2.57 billion, compared with estimates of $2.53 billion.

The improving economic outlook for the year, including at least one interest rate cut and increased consumer confidence, is expected to boost the total value of goods sold on the platform.

According to data from LSEG, the e-commerce platform expects revenue for the quarter to be between $2.5 billion and $2.56 billion, compared to analysts’ estimate of $2.54 billion.

eBay posted a profit of $224 million in the second quarter, compared with $171 million a year earlier.

(Reporting by Akash Sriram in Bengaluru; Editing by Mohammed Safi Shamsi)