eBay released the earnings results from its second fiscal quarter after closing bell tonight, posting adjusted earnings of 43 cents per share on $2.23 billion in revenue. Analysts had been expecting earnings of 42 cents per share on $2.17 billion in revenue. In last year’s second quarter, eBay posted earnings of 42 cents per share on $2.1 billion in revenue.
eBay sees growth across segments
GAAP earnings were 38 cents per share. eBay said gross merchandise volume for the June quarter grew 6% on a currency neutral basis or 4% on a reported basis to $20.9 billion. The company’s Marketplaces platforms moved $19.8 billion of gross merchandise volume and $1.8 billion in revenue during the second quarter. Marketplaces revenue grew 3% on a currency-neutral basis or 1% on a reported basis. StubHub’s gross merchandise volume grew 35% to $1.1 billion, while its revenue grew 40% to $225 million. eBay’s Classifieds platform grew its revenue 15% to $207 million.
ValueWalk's Raul Panganiban interviews Kirk Du Plessis, Founder and CEO of Option Alpha, and discuss Option Alpha and his general approach to investing. Q1 2021 hedge fund letters, conferences and more The following is a computer generated transcript and may contain some errors. Interview with Option Alpha's Kirk Du Plessis
For the first time, eBay passed the 1 billion live listings mark during the quarter. The company generated $617 million in free cash flow and $764 million in operating cash flow and bought back $500 million worth of shares. eBay’s board also authorized another $2.5 billion worth of share repurchases with no expiration.
eBay issues strong full-year outlook
eBay management expects full-year adjusted earnings to come in between $1.85 and $1.90 per share, compared to the Street’s estimate of $1.86 per share. They expect GAAP earnings for the full year to be between $1.60 and $1.65 per share. The online marketplace operator expects full-year revenue to be between $8.85 billion and $8.95 billion, compared to the consensus of $8.82 billion.
For the third quarter, eBay projects net revenue of between $2.16 billion and $2.19 billion, which would be currency-neutral growth of between 6% and 7%. The company expects non-GAAP earnings for the quarter to come in between 42 cents and 44 cents per share and GAAP earnings to be between 35 cents and 37 cents per share.
eBay shares surged in after-hours trades, climbing by as much as 6.11% to $28.64.