Investing.com -- Shares in eBay Inc (NASDAQ:EBAY) surged more than 6% on Wednesday in after-hours trading after the global e-commerce leader saw its sales rise sharply over the previous quarter, marking the Silicon Valley-based company's second straight period of quarterly gains.
During eBay's second quarter of Fiscal Year 2016, which ended in late-June, the company finished with sales of $2.23 billion for the three-month period, representing an increase of 5.7% on a year-over-year basis. It came as eBay's gross merchandise volume (GMV) soared by 6% on a currency-neutral basis, driving net income and helping generate more than $760 million of free cash flow over the quarter.
Consequently, eBay reported net profit of $435 million or 0.38 per share, up considerably from earnings of $83 million or 0.07 from the same period a year ago. The company also reported adjusted earnings per share, excluding certain items of 0.43, topping analysts expectations of 0.42.
"The second quarter was another good quarter where we delivered strong results and had acceleration in growth," said Devin Wenig, President and CEO of eBay Inc. "We are now one year into executing our strategy to provide the best choice, the most relevance and the most powerful selling platform, and there are signs of momentum in our business. We continue to invest in our platforms to ensure eBay is a global commerce leader for years to come."
In addition, eBay announced on Wednesday that its Board of Directors authorized a $2.5 stock repurchase program in July. The program is designed to offset the effects of eBay's equity compensation program, the company said in a statement.
Shares in eBay jumped 1.81 or 6.71% to 28.80 in after-hours trading.