BUSINESS

Higher revenue from PayPal, e-commerce sites sends eBay's 2nd-quarter earnings up sharply

07/18/2012 05:08 EDT | Updated 09/17/2012 05:12 EDT
NEW YORK, N.Y. - EBay Inc. more than doubled its second-quarter net income thanks to higher revenue from its PayPal online payments business and its e-commerce websites. The results sent its stock up in after-hours trading.

EBay Inc. earned US$692 million, or 53 cents per share, in the April-June period. That's up from $283 million, or 22 cents per share, in the same period a year earlier.

Adjusted earnings were $730 million, or 56 cents per share, in the latest quarter — a penny above analysts' expectations.

Revenue grew 23 per cent to $3.4 billion from $2.76 billion.

Analysts, on average, were expecting revenue of $3.36 billion, according to FactSet.

EBay said its marketplaces business, which includes its flagship website, saw the strongest growth rate since 2006.

For the current quarter, eBay is forecasting adjusted earnings of 53 cents to 55 cents per share. That compared with analysts' expectations of 55 cents.

The San Jose, Calif.-based company is expecting revenue of $3.3 billion to $3.4 billion. Analysts are predicting $3.41 billion.

EBay's stock climbed $1.90, or 4.7 per cent, to $42.36 in after-hours trading. The stock had closed up $1.39, or 3.6 per cent, at $40.46.