Markets

eBay shares rise after earnings beat

Key Points
  • eBay shares jumped in after-hours trading on Tuesday after the company exceeded Wall Street's estimates in its third-quarter earnings report.
  • The company reported earnings of 56 cents per share, while analysts expected 54 cents per share.
  • Revenue came in at $2.65 billion for the quarter, in line with estimates.
eBay's headquarters in San Jose, California, U.S.
Bloomberg |  Getty Images

eBay shares jumped as much as 5 percent in after-hours trading on Tuesday after the company exceeded Wall Street's estimates in its third-quarter earnings report.

The company reported earnings of 56 cents per share, while analysts expected 54 cents per share. Revenue came in at $2.65 billion for the quarter, in line with estimates.

eBay said it expects fourth-quarter earnings between 67 cents and 69 cents per share, higher than the 67 cents analysts expected, according to Refinitiv.

Gross merchandise volume, which measures the total value of items sold on eBay, was $22.7 billion for the quarter compared to the $23.2 billion analysts estimated.

Former parent company PayPal said last week that eBay's payment volume on the platform grew more slowly than in previous quarters, causing eBay's stock to fall. Earlier in the year, eBay replaced PayPal with Dutch company Adyen as its preferred payment partner.

Shares of eBay closed up 2 percent on Tuesday at $27.42 per share. The stock is down 27 percent this year.