eBay's 2Q Results: Postgame Scorecard
eBay's (NASDAQ:EBAY) net income increased and topped Wall Street expectations in the second quarter.
Earnings and Revenue The company experienced stronger-than-expected EPS and revenues. The company reported EPS of 53 cents a share versus the 48 cents a share estimate and revenues of $3.4 billion versus the $3.36 billion estimate. The estimates of 17 analysts ranged from profit of 46 cents to profit of 56 cents.
The company's net income for the quarter was $692 million. This is 144.2% higher than the year-ago quarter. Revenue climbed 23.1% from $2.76 billion in the same period last year.
Company Fundamental Trends Last quarter marked the third in a row of rising net income. The company has averaged revenue growth of 28.7% over the past five quarters.
History Against Expectations The company has managed to top estimates the last two quarters. In the first quarter, it beat expectations with net income of 48 cents versus a mean estimate of net income of 43 cents per share.
Official Comment: "We delivered a great second quarter, driven by eBay Marketplaces' best performance in years, strong growth at PayPal and strong same-store-sales growth for GSI's large retail customers," said John Donahoe, eBay Inc. President and CEO. "Our entire company is strong, but we're particularly pleased with eBay Marketplaces, which delivered its strongest organic growth in gross merchandise volume, excluding vehicles, since 2006. And mobile continues to be a game changer. We now expect eBay and PayPal mobile to each transact $10 billion in volume in 2012 - that's more than double 2011, a staggering surge in mobile shopping and payments on devices that did not exist just a few years ago. Retail is at an inflection point, and we are helping to reshape how people around the world shop and pay."
Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.