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eBay Beats Forecasts, Sees Stock Jump

PayPal, Merchant Services experience impressive growth

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This afternoon, eBay delivered its third quarter earnings report, and it’s a good bet that the company was eager to do so.  eBay beat analysts’ forecasts for the third quarter, gave better-than-expected guidance regarding the fourth quarter, and also discussed an interesting stock buyback program.

Let’s start with the third quarter results.  eBay managed to report earnings per share of $0.40, which is a significant improvement compared to the $0.37 analysts predicted.  It also earned $2.25 billion in revenue rather than the expected $2.18 billion.

Those victories came in part due to the success of PayPal and the Merchant Services program.  Apparently over a million new PayPal accounts were created every month during the third quarter, and Merchant Services net total payment volume grew about 40 percent on a year-over-year basis.

As for the future, eBay thinks it can earn $0.45 to $0.48 per share next quarter instead of just $0.44.  And $2.39 billion to $2.49 billion in revenue is supposed to be doable, which covers the possibility of $2.41 billion.

eBay

Finally, with regards to buying back stock, eBay stated, "The company repurchased approximately $300 million of its common stock in the third quarter.  In addition, the company’s board of directors authorized an additional $2.0 billion stock repurchase program for the purpose of offsetting dilution from the company’s equity compensation programs."

eBay’s stock is now up 7.17 percent in after-hours trading due to all this excitement.

eBay Beats Forecasts, Sees Stock Jump
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  • Rick

    Stock still way way way down from $58 high or basically any pre-2009 level, marketplaces still dying, all eggs wrapped up in fragile Paypal basket now, Amazon destroying Ebay marketplaces, Etsy catching up, numerous competitors making serious inroads, in particular U.S. traffic, sell-through rates, and domestic marketplace profitability plunging since late 2006 and most importantly market share in serious, steady decline. This is a company that could have owned the world. Soon the percentage of the U.S. e-commerce market Ebay has won’t even be considered significant.

  • John

    yeah they made earnings alright. by scamming people like me. I was double charged by ebay for sales and of course there is not talking to them to get it back. sure paypal made the money. they have several million complaints of people having their funds stolen and frozen. I would avoid ebay as a company, when you actually use them you will find they are full of problems and illegal activities.

  • Jane

    Been selling on ebay for years & now it is my worst nightmare. People constantly scam me by saying the item they bought isn’t quite good enough. Ebay reprimands me & gives the scammer the money back, no questions asked. I am now limited to selling 10 items a month & not allowed to relist, when I used to list 10 to 15 a day. So now I quit selling & also I refuse to buy anything because I am boycotting their ignorance. All my stars & feedback are actually quite good but ebay says I am failing & make up some secrect failing number that is no where to be found. I figure their stock should start failing soon & they deserve it.

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