Stock in eBay jumps on better-than-expected profit
Stock in eBay Inc yesterday jumped 6.9 per cent to $38.35 in extended trading, and at one point, hit its highest level of $38.83 since late 2007, after it the e-commerce firm reported better-than-expected rises in quarterly profit and sales.
The e-commerce firm said it earned a profit of $725 million, or 55 cents a share, during the first three months of this year. The profit is considerably up from $619 million or 47 cents a share in the year ago period.
Revenue jumped 29 per cent to settle at $3.3 billion during the same period of time.
Analysts had predicted a profit of 52 cents a share on revenue of $3.15 billion for the company's first quarter.
Chief Executive John Donahoe also revealed a 32 per cent growth in revenue from PayPal, and said the company sees huge opportunity for PayPal online.
Speaking on the topic, Donahoe said, "PayPal mobile payment volumes continue to be on fire. We see enormous opportunity for PayPal online, on mobile devices and increasingly, in the offline environment as well."
For the second quarter, eBay expects profit of 53 to 55 cents a share on revenue of between $3.25 billion and $3.35 billion. For full-year, the company predicted profit of $2.30 to $2.35 a share on a revenue of between $13.8 billion and $14.1 billion.