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eBay's forecast disappoints Wall Street

Online auction site's current quarter and full-year profit estimates don't match analyst expectations.

John Paczkowski

First-quarter earnings for eBay exceeded analysts' estimates, but the company's tepid second-quarter forecast appears to have turned investors' stomachs.

Shares in the eBay slid 7 percent Wednesday after the company said it expects profit of between 37 cents and 39 cents a share in the current quarter--short of the 40 cents a share the Street was expecting.

And a disappointing full-year outlook didn't help matters. As BGC Partners analyst Colin Gillis observed, "The expectations for a monster quarter are not materializing."

Still, the company did beat the Street in its latest quarter, reporting earnings of 42 cents per share on revenue of $2.196 billion. Analysts had anticipated 41 cents a share on $2.18 billion.