GO
Loading...

EBay Profit Rises 24%, Exceeding Estimates

EBay's quarterly net profit rose 24%, aided by strength in its core auction business and international growth, and the company said 2007 earnings would be at the high end of analysts' forecasts.

A consensus forecast from Thomson Financial projected eBay earning 28 cents a share. In the comparable period a year ago, eBay reported a profit of 24 cents a share.

Shares surged 9.7% to $32.92 in extended trading following the results, adding to a 4.8% rise in regular-session trading ahead of the report, when it was buoyed by a surge in Internet stocks and the broader U.S. market.

Net income reached $346.5 million, up 24% over $279.2 million in last year's fourth quarter.

Revenue rose 29% to $1.72 billion from a year earlier, representing a steadying of eBay's growth rate in recent quarters that could reassure investors worried by a decline in the past three years from levels around 50%.

Analysts were looking for revenue, on average, of $1.67 billion, a growth rate of about 25%.

Excluding one-time stock-based compensation charges, net income rose 35% to $397 million, or 28 cents a share.

EBay said it expected first-quarter net revenue of $1.67 billion to $1.72 billion, squarely in the middle of current estimates. Analysts forecasts ranged from $1.65 billion to $1.75 billion for the quarter, according to Reuters Estimates.

The company expects first-quarter diluted earnings per share, excluding one-time items, in a range of 28 cents to 30 cents. The current Wall Street consensus is for 29 cents a share, according to the Reuters Estimates survey.

For the 2007 year, eBay said it expected revenue from $7.05 billion to $7.30 billion.

Wall Street was looking for revenue to grow around 21%, based on the average of a range of estimates between $6.94 billion and $7.49 billion, according to Reuters Estimates, squarely in the middle of forecasts.

Full-year 2007 earnings, excluding one-time items, are expected to be in a range from $1.25 to $1.29 a share, the company said.

EBay president and chief executive officer Meg Whitman will appear Thursday on CNBC's "Squawk on the Street" at 9:45 am New York time.

Symbol
Price
 
Change
%Change
EBAY
---

Featured

  • The Marriner S. Eccles Federal Reserve building in Washington.

    CNBC's Fed Survey shows market pros aren't very confident the Fed can end its easy money polices without a market crash, a recession or bad inflation.

  • Merck employees walk past a Merck sign in front of the company's building in Summit, New Jersey.

    Merck reported better-than-expected results, with sales of newer drugs offsetting declining sales of drugs facing generic competition.

  • Pfizer reported higher-than-expected second-quarter earnings, helped by growing sales of its cancer medicines.

  • An attendee is silhouetted against a Microsoft poster at the Microsoft Developers Build Conference in San Francisco, April 2, 2014.

    An agency that enforces antimonopoly laws visited company offices in four cities, as the country more closely scrutinizes multinational companies.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Don't Miss

U.S. Video