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eBay More Than Doubles Earnings in Q2

Online marketplace's stock rise 5% at the sound of good news


eBay (NASDAQ:EBAY) was up 6% in after-market trading Wednesday after it announced it more than doubled its profit in the second quarter.

In Q2, eBay earned $692 million, compared to $283 million in the year-ago period, and revenues of $3.4 billion were 22% better. Earnings per share rose to 53 cents, up from 22 cents in 2011. Adjusted EPS of 56 cents beat analyst estimates by a penny.

eBay President and CEO John Donahoe cited particularly strong performances by eBay Marketplaces and PayPal for the impressive increase in the company’s financial statistics. Marketplaces’ 15% year-over-year growth rate in gross merchandising volume excluding vehicles outstripped every year since 2006.

Meanwhile, PayPal saw its active accounts increase by 13% to 113.2 million users. Revenue from PayPal increased 26% from last year.

Further growth seems slated for the future, as PayPal announced this quarter that it collaborating with Japanese company SoftBank (PINK:SFTBY) on spreading PayPal Here, its point-of-sale service.  So far, 16 major U.S. retailers have signed on with PayPal to allow costumers to pay in their stores using only a phone number or a PayPal card and PIN. The system debuted in locations for Abercrombie & Fitch (NYSE:ANF) and Jos. A. Bank Clothiers (NASDAQ:JOSB) at the beginning of this quarter.

eBay’s after-market gains came on top of 3%-plus advances made during the day, continuing a roll that has seen EBAY shares surge more than 33% year-to-date.

— Ryan Hauck, InvestorPlace

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC