EBay Beats Earnings Forecasts and Increases Sales Outlook
EBay on Wednesday posted second-quarter earnings per share of 34 cents on revenue of $1.83 billion, topping Wall Street expectations and its own outlook.
A Thomson Financial analyst consensus had called for second-quarter adjusted earnings of 32 cents per share on sales of $1.78 billion. Those figures were in line with the e-commerce company's own guidance: In April, eBay predicted second-quarter adjusted earnings to range from 31 cents to 33 cents per share, on sales of between $1.75 billion and $1.8 billion.
Also on Wednesday, eBay raised its third-quarter guidance for revenue to between $1.775 billion and $1.825 billion, from a prior prediction of $1.794.
EBay shares had lost $0.20 to close at 34.05 Wednesday. Following the earnings news and revised guidance, they gained $0.71 in after-hours trading.
During the three months ending June 30, eBay expanded its business grasp. It acquired StumbleUpon, an Internet company that lets users share data about favorite Web sites, for $75 million. EBay said StumbleUpon has some 2.3 million users. It also made deals to extend its reach into Turkey and Thailand, giving it a local business presence in a total of 37 nations.
Beyond its online auctions, the San Jose, Calif.-based eBay also competes with VonageHoldings in Voice-over-Internet Protocol (VoIP), or online telephony.