Ebay earnings edged past expectations while revenue fell slightly short of expectations Wednesday. Shares rose decisively after initially fluctuating in extended hours trading.
The online auction company reported second-quarter earnings of 69 cents a share, excluding one-time items, on revenue of $4.37 billion.
The 13 percent revenue gain for the second quarter came as the firm survived a massive consumer security breach and continues to face increasing competition from arch-foe Amazon.com and a growing number of smaller niche retail websites.
Analysts had expected the company to report earnings,ex-items, of 68 cents a share on $4.38 billion in revenue, according to a consensus estimate from Thomson Reuters.
Meanwhile, the company said it expects to hand in current quarter earnings of between 65 cents a share and 67 cents a share versus expectations for 70 cents a share. Additionally, the company said it sees full-year revenue of between $4.3 billion and $4.4 billion versus expectations of $4.42 billion.
Shares rose more than 2 percent after initially fluctuating. (Click here to get the latest quotes.)
"In a challenging second quarter, our commerce and payments platforms delivered strong enabled commerce volume growth of 26 percent," said eBay President and CEO John Donahoe in a press release. "PayPal generated another strong quarter while eBay's growth was hampered by its global password reset for all users. Wecontinued our momentum in the four competitive commercebattlegrounds of mobile, local, global and data."
PayPal gained 4 million new active registered accounts for a total of 152 users at the end of the quarter, the release said.
Ebay also reported a 26 percent rise in enabled commerce volume year-over-year in the second quarter to $62 billion, with mobile contributing to 20 percent of the volume in a 68 percent increase.