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.


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.