Stocks

eBay Inc Surges After Earnings Top Estimates

eBay released the earnings results from its first fiscal quarter after closing bell tonight, posting adjusted earnings of 77 cents per share or $943 million on revenue of $4.45 billion for the quarter. Analysts had been looking for earnings of 70 cents per share on $4.42 billion in revenue for the quarter. In last year’s first quarter, the auction site posted earnings of 70 cents per share on $4.3 billion in revenue, edging out estimates for both metrics.

ebay

Key metrics from eBay’s earnings report

Net income was 51 cents per share, compared to a loss of $1.82 per share in the same quarter a year ago. eBay said the strengthening of the U.S. dollar significantly impacted its results, cutting its organic growth rate from 9% to 4%. eBay saw a negative impact of 7 points in revenue growth, while PayPal saw a 3-point negative impact. PayPal benefited from currency hedging which partially offset the negative impact.

PayPal’s total net payment volume increased 18% to $61 billion. Merchant Services volume increased 26%, while eBay volume fell 1%. eBay Marketplaces payment volume was $15 billion or 24% of total payments volume. Revenue in the segment increased to $2.1 billion. PayPal added 3.6 million new active accounts during the first quarter and processed more than 1 billion transactions, a 24% increase from last year.

eBay Marketplaces saw a 2% decline in gross merchandise volume, mainly due to the strengthening dollar. U.S. merchandise volume increased 2%, while international volume fell 4%. Revenue for the segment was $2.1 billion. eBay Marketplaces gained 2.1 million new buyers, an 8% increase. Active buyer growth fell again, but management sees signs of stabilization.

eBay Enterprise saw its clients increase their same store sales 10% and generated more than $1 billion in gross merchandise sales. Revenue for the segment increased to $288 million.

eBay a bit light on guidance

For the current quarter, eBay expects between $4.4 billion and $4.5 billion in net revenues and GAAP earnings of between 44 cents and 49 cents per share. The company expects non-GAAP earnings for the June quarter to be between 71 cents and 73 cents per share.

eBay management said it expects full year revenue to be between $18.35 billion and $18.85 billion. The consensus estimate for eBay’s full year revenue is $18.9 billion. The company expects adjusted earnings to be between $3.05 and $3.15 per share. The consensus estimate is $3.09 per share for the full year.

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