eBay (NASDAQ:EBAY) shares dropped more than 5% on Thursday despite the company posting strong Q4 results.
Q4 EPS came in at $1.07, better than the Street estimate of $1.06. Revenue was $2.5 billion, beating the Street estimate of $2.46 billion, driven by strong holiday season demand, FX headwinds at the low end, continued strong momentum in focus categories (P&A specifically), and impressive growth in the company’s advertising business.
For Q1/23, the company expects EPS to be in the range of $1.05-$1.09, compared to the Street estimate of $1.06. Revenue is expected in the range of $2.46-2.5 billion, beating the Street estimate of $2.37 billion.
The company is continuing to invest in the business, with the rollout of international shipping initiatives, M&A, and other product enhancements and marketing efforts, weighing considerably on margins in 2023.
eBay also increased its quarterly dividend by 13.6% to $0.25 per share.