Strong Ebay Results
shares were up 8 percent after the bell on Wednesday after the company's board also authorized an additional $2.5 billion (roughly Rs. 16,800 crores) stock buyback programme. The company, which spun off PayPal last July, has tackled slowing growth by focussing on small business sellers, while offering a bigger selection of products.
Gross merchandise volume, or the total value of all goods sold on its sites, was up 4 percent at $20.9 billion (roughly Rs. 1,40,446 crores) in the second quarter ended June 30, helped by strength in its US business.The number of active buyers rose 4 percent to 164 million.
The company's revenue also got a boost from robust sales at Stubhub,
which won a 6.5 year revenue-sharing deal to resell tickets for the New York Yankees last month. Stubhub's revenue jumped 40 percent to $225 million in the latest quarter. eBay raised its full-year revenue forecast to a range of $8.85 billion to $8.95 billion, from $8.6 billion to $8.8 billion; and adjusted profit from continuing operations in the range of $1.85 to $1.90, from $1.82 to $1.87 per share.
The improved forecast was a "positive surprise" this early in the year, Wedbush Securities analyst Gil Luria said.For the third quarter, the company forecast revenue of $2.16 billion to $2.19 billion and adjusted profit from continuing operations of 42 to 44 cents per share.
Analysts on average expect profit of 44 cents per share and revenue of $2.14 billion, according to Thomson Reuters I/B/E/S.The company's net income rose to $435 million, or 38 cents per share, in the latest quarter from $83 million, or 7 cents per share, a year earlier.
Excluding one-time items, eBay earned 43 cents per share, beating analysts' expectations by 1 cent.Revenue rose 5.7 percent to $2.23 billion, ahead of analysts' average estimate of $2.17 billion.