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EBay tops analyst's sales forecasts in spite of currency headwinds

Published 04/26/2016, 07:34 PM
Updated 04/26/2016, 07:41 PM
EBay posted slight revenue gains in the first quarter, halting a year of quarterly losses
EBAY
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Investing.com -- Shares in eBay, Inc. inched up in after-hours trading after the multinational e-commerce company topped analysts' revenue forecasts last quarter, while posting its first quarter of sales gains in more than a year.

During EBay's (NASDAQ:EBAY) first quarter of Fiscal Year 2016, the San Jose-based company reported earnings of $482 million or 0.41 per share, down from $626 million or 0.51 from the same period a year earlier. On an adjusted earnings per share basis, which stripped out stock-based compensation expenses, EBay suffered a slight decline from 0.48 to 0.47 for the quarter.

At the same time, EBay increased its revenue on the period by 3.7% to $2.14 billion, amid gross merchandise volume of $20.5 billion for the first three months of the year. On a currency-neutral basis, EBay sales jumped by approximately 6% in the first quarter. Analysts expected to see earnings per share of 0.45 on revenues of $2.08 billion.

"(The first quarter) represents another quarter of solid results, as we continue to position eBay for long-term success," said Devin Wenig, President and CEO of eBay Inc. "We are executing our plan and making progress on our strategic priorities to ensure our buyers have the best choice of products and a simple, personalized shopping experience, while sellers benefit from our powerful selling platform."

Also on Tuesday, EBay disclosed that the company repurchased approximately $1.0 billion of its common stock or 42.3 million shares during the first quarter. As of March 31, EBay's total repurchase authorization stood at $0.8 billion, the company said in a statement.

Moving forward, EBay expects next revenue between $2.14 and $2.19 billion during the second quarter, with currency-neutral growth between 4 and 6%. In addition, EBay expects to report GAAP earnings per diluted share from continuing operation between 0.32 and 0.34.

Shares in EBay gained 0.23 or 0.94% to 24.72 in after-hours.

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