EBay posted quarterly profit and revenue that topped analysts' estimates on Wednesday, driven by transaction growth and corporate cost control.
The stock surged 5 percent in extended trading. (Click here to track eBay shares.)
The e-commerce company reported adjusted first-quarter earnings of 77 cents per share on $4.45 billion in revenue. EBay's profit and sales rose 10 and 4 percent from a year earlier, respectively.
"We had a strong first quarter, with eBay and PayPal off to a good start for the full year," said eBay President and CEO John Donahoe in a release.
Wall Street had expected eBay to deliver quarterly earnings per share of 70 cents on $4.42 billion in revenue, according to consensus estimates from Thomson Reuters.
The payment segment was a bright spot, as revenue jumped 14 percent year over year. Volume in transaction service PayPal climbed 18 percent as it added 3.6 million active accounts in the quarter.
In the company's earnings call, Donahoe said the previously announced separation of PayPal and eBay into two publicly traded companies would happen in the third quarter. The move will allow for more "focus," he said.
EBay's marketplaces were sluggish, as net revenue fell 4 percent. The company's transaction volume fell off 1 percent, and it said a stronger dollar dragged on sales as merchandise volume fell off 2 percent.
Moving forward, the company will look to diversify transactions to create a "vibrant marketplace," said Devin Wenig, eBay's president of global marketplaces in the earnings call.
EBay also set full-year earnings guidance of $3.05 to $3.15 per share, including restructuring costs of roughly $350 million from the
Earlier this month, eBay announced an operating agreement that would "preserve the benefits of the existing relationship between the two companies and ensuring that the separation is seamless for customers of both companies," according to a press release. The agreement would last five years.
Shares in the company have increased about 2.5 percent over the last 12 months.