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eBay Shares Rally Following Q2 Earnings Beat

EBAY

Shares of eBay Inc (NASDAQ: EBAY) traded up more than 6.5 percent in Wednesday’s after-hours session, following the company’s Q2 results. Earnings of $0.43 per share came in $0.01 ahead of the Street’s consensus, while revenue of $2.23 billion, up 5.7 percent year-over-year, beat estimates by $60 million.

Management announced an extension of the company’s stock-repurchase plan, as the board had approved an additional $2.5 billion in buybacks. Over the second quarter, half a billion dollars in stock were repurchased by the firm.

For the full-year, the e-commerce giant raised its revenue forecast to a range of $8.85 billion to $8.95 billion, up from a previous guide of $8.6 billion to $8.8 billion. Management also guided for adjusted profit from continuing operations in the $1.85 to $1.90 per share range, up from a previous $1.82 to $1.87 per share.

Interestingly, while the company’s marketplace business remains the largest revenue generator, its growth only reached 1 percent. On the other hand, tickets-selling site StubHub grew about 40 percent, posting sales of $225 million.

“Q2 was another good quarter where we delivered strong results and had acceleration in growth,” President and CEO Devin Wenig stated. “We are now one year into executing our strategy to provide the best choice, the most relevance and the most powerful selling platform, and there are signs of momentum in our business. We continue to invest in our platforms to ensure eBay is a global commerce leader for years to come.”



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