Image source: eBay.
What: Shares of eBay (NASDAQ: EBAY) rose 33.1% in July, according to data provided byS&P Global Market Intelligence. The company's second-quarter results beat analyst estimates across the board, and the company announced a new share buyback program and higher guidance for the full year.
So what: eBay reported second-quarter revenue of $2.23 billion, up 6% year over year and about $60 million higher than the average analyst estimate. Gross merchandise volume grew 6% on a constant currency basis to $20.9 billion. eBay had more than 1 billion live listings during the second quarter, the first time the company has surpassed that mark.
Non-GAAP EPS came in at $0.43, up from $0.42 during the prior-year period and $0.01 higher than analysts expected. Non-GAAP net income declined 4% year over year, with share buybacks driving the EPS growth. The company had 164 million active buyers during the second quarter, up from 157 million during the prior-year period.
eBay spent $500 million on share buybacks during the second quarter, and the company announced a new $2.5 billion authorization.
Now what: eBay expects to produce $8.85 billion to $8.95 billion of revenue during 2016, up from a previous range of $8.6 billion to $8.8 billion. Non-GAAP EPS is expected in the range of $1.85 to $1.90.
eBay produced a solid quarter, growing revenue at a faster pace than expected. CEO Devin Wenig reiterated the company's strategy:
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