EBay Q3 Profit Surges

(RTTNews) - eBay Inc. (EBAY) Wednesday reported a third-quarter profit that more than doubled from last year, as revenues jumped 25%.

eBay's third-quarter profit rose to $664 million or $0.94 per share from $310 million or $0.37 per share last year. Excluding one-time items, income from continuing operations $604 million or $0.85 per share, up from $435 million or $0.52 per share last year.

Revenues for the quarter increased 25 percent to $2.61 billion from $2.08 billion last year.

Analysts polled by Thomson Reuters expected earnings of $0.86 per share and revenues of $2.69 billion for the quarter.

"I'm pleased with the third quarter results," said CEO Jamie Iannone. "On an apples to apples basis, we delivered results that exceeded expectations on both the top and bottom lines. Our third quarter performance reflects the strength of our newly focused strategy coupled with the enormous untapped potential of our marketplace."

In the third quarter, the company grew active buyers by 5 percent to a total of 183 million active buyers. Gross merchandise volume for the quarter was up 22 percent to $25.0 billion.

Looking forward to the fourth quarter, the company expects revenues between $2.64 billion and $2.71 billion and adjusted earnings of $0.58 to $0.64 per share.

Analysts currently expect earnings of $0.88 per share on revenues of $2.78 billion.

For full year 2020, the company now expects revenues of $10.04 to $10.11 billion and adjusted earnings of $3.34 to $3.40 per share. Previously, the company expected revenues between $9.59 billion and $9.78 billion and adjusted earnings of $3.04 to $3.16 per share.

Analysts currently estimate earnings of $3.58 per share and revenues of $10.71 billion.

EBAY closed Wednesday's trading at $53.25, up $0.30 or 0.56%, on the Nasdaq. The stock, however, dropped $0.82 or 1.54%, in the after-hours trade.