EBay Q1 Profit Tops Street, Outlook Strong, Shares Up

(RTTNews) - eBay Inc. (EBAY) Wednesday reported a first-quarter profit that trumped Wall Street analysts' estimates, as did revenues. The company also forecast a second-quarter outlook above current estimates, sending shares up nearly 5% in extended trading session.

eBay's first-quarter profit rose to $518 million or $0.57 per share from $407 million or $0.40 per share last year.

Excluding one-time items, income from continuing operations were $0.67 per share, up from $0.53 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.63 per share for the quarter.

Revenues for the quarter grew 2 percent to $2.64 billion from $2.58 billion last year. Analysts had a consensus revenue estimate of $2.58 billion for the quarter.

"We delivered a solid first quarter with revenue and EPS," said CEO Devin Wenig. "Our initiatives to create a next generation payment and advertising experience are on track, we saw healthy buyer growth and disciplined cost control, and we continue to simplify the buying process while remaining focused on seller's success."

In the first quarter, the company grew active buyers by 4 percent to a total of 180 million active buyers on the site. Gross merchandise volume for the quarter was down 4 percent to $22.6 billion.

Looking forward to the second quarter, the company expects revenues between $2.64 billion and $2.69 billion and adjusted earnings of $0.61 to $0.63 per share. Analysts currently expect earnings of $0.60 per share on revenues of $2.65 billion.

For full year 2019, the company expects revenues between $10.83 billion to $10.93 billion and adjusted earnings of $2.64 to $2.70 per share. Analysts currently estimate earnings of $2.66 per share and revenues of $10.85 billion.

EBAY closed Wednesday's trading at $36.67, up $0.52 or 1.44%, on the Nasdaq. The stock further gained $1.52 or 4.15% in the after-hours trade.