EBay beats revenue estimate, bumps up forecasts
Online retailer eBay reported better-than-expected quarterly revenue and raised its sales forecast for the year as efforts to revamp its online marketplace start to pay off.
EBay shares were up 8pc after the bell on Wednesday after the company's board also authorized an additional $2.5bn 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 4pc at $20.9bn in the second quarter ended June 30, helped by strength in its U.S. business.
The number of active buyers rose 4pc 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 40pc to $225 million in the latest quarter.
EBay raised its full-year revenue forecast to a range of $8.85bn to $8.95bn, from $8.6bn to $8.8bn; 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 $2.16bn to $2.19bn 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 $2.14bn, 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 5.7pc to $2.23bn, ahead of analysts' average estimate of $2.17bn.
Up to Wednesday's close, shares of the San Jose, California-based company had fallen 5.6pc in the past 12 months.