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Ebay profit beats, shares jump after-hours

Thursday, October 22, 2015 - 06:20

[LONDON] EBay Inc reported quarterly revenue and profit above analysts' average estimate on Wednesday as its marketplaces business performed better than expected, sending its shares soaring in after-hours trading.

The quarterly results were the first for the company since it spun off its PayPal business in July.

EBay, whose shares were up 8.6 per cent in extended trading, faces intensifying competition across its businesses without PayPal, a leader in the fast-growing digital payment processing market.

PayPal Holdings Inc, formerly eBay's main growth engine, became a separate company on July 18.

EBay's competitors include not only Amazon.com Inc but a growing coterie of brick-and-mortar retailers such as Wal-Mart Stores Inc, Target Corp and Macys Inc which are investing to boost their online presence.

EBay's net revenue fell to US$2.1 billion in the third quarter ended Sept 30 from US$2.15 billion in the same quarter last year.

Analysts on average had expected revenue of US$2.09 billion.

Net income fell to US$539 million, or 45 cents per share, from US$673 million, or 54 cents per share, a year earlier.

Excluding items, the company posted adjusted earnings per share of 43 cents, compared with the average estimate of 40 cents, according to Thomson Reuters I/B/E/S.

Gross merchandise volume fell 2 per cent, including the effect of currency rates. Volume grew 6 per cent on an forex-neutral basis.

The company's shares closed at US$24.21.

REUTERS

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