EBay Shares Rise 5% As Quarterly Results Beat Expectations

EBay reported stronger-than-expected first-quarter earnings and sales late Wednesday, pushing its shares higher in after-hours trade. The online marketplace, expected to spin off PayPal later this year, reported net income of $626 million, or 51 cents a share, compared with a loss of $2.3 billion, or $1.82 a share, in the year-earlier period. Excluding one-time items, the company reported non-GAAP earnings of $943 million, or 77 cents a share, compared with an adjusted profit of $899 million, or 70 cents, last year. That topped average analyst estimates of 70 cents, according to FactSet data. Revenue for the quarter rose to $4.45 billion from $4.26 billion a year ago, led by an 18% improvement in total payment volume and a 26% increase in merchant services volume. For the full year, eBay forecast adjusted earnings in the range of $3.05 to $3.15 a share, compared with the consensus estimate of $3.09. It is anticipating full-year revenue between $18.35 billion and $18.85 billion, compared with the Wall Street view of $18.9 billion. Shares of eBay rose 5% in extended trade following the results.