EBay beats 3Q profit forecasts

AP News
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Posted: Oct 21, 2015 5:37 PM

SAN JOSE, Calif. (AP) — EBay Inc. (EBAY) on Wednesday reported third-quarter earnings of $539 million.

Results beat estimates, and shares jumped 7 percent in aftermarket trading.

On a per-share basis, the San Jose, California-based company said it had net income of 45 cents. Earnings, adjusted for one-time gains and costs, came to 43 cents per share.

The results surpassed Wall Street expectations. The average estimate of 25 analysts surveyed by Zacks Investment Research was for earnings of 41 cents per share.

The e-commerce company posted revenue of $2.1 billion in the period, which met Street forecasts.

A year ago eBay reported earnings from continuing operations of $509 million, or 41 cents per share, on revenue of $2.15 billion.

During the quarter, eBay completed the spinoff of its PayPal mobile payments unit which had been the company's fastest-growing segment. It now plans to focus on its marketplace e-commerce business.

For the current quarter ending in December, eBay expects its per-share earnings to range from 47 cents to 49 cents.

The company said it expects revenue in the range of $2.28 billion to $2.33 billion for the fiscal fourth quarter. Analysts surveyed by Zacks had expected revenue of $2.33 billion.

EBay expects full-year earnings in the range of $1.80 to $1.82 per share.

EBay shares closed Wednesday down 21 cents at $24.21. In after-hours trading, shares rose $2.02, or 8.3 percent, to $26.23.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on EBAY at http://www.zacks.com/ap/EBAY

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Keywords: eBay, Earnings Report, Priority Earnings

This story has been corrected to remove reference to eBay's historical stock data which did not reflect its stock split.