eBay Earns 43 Cents per Share

No one was expecting much from eBay (EBAY) but the online auction house earned 43 cents per share for Q3 compared with the Street’s consensus of 40 cents per share. This is their first earnings report without PayPal.

eBay Inc., a global commerce leader, today reported that gross merchandise volume (GMV) for the quarter ended September 30, 2015, increased 6% on a foreign exchange (FX) neutral basis, in-line with the prior quarter. Revenue for the quarter was $2.1 billion, driving non-GAAP net income from continuing operations of $529 million or $0.43 per diluted share, and GAAP net income from continuing operations of $545 million, or $0.45 per diluted share. The company repurchased $599 million of its common stock in the quarter, underscoring management’s confidence in the long-term value of the business.

“We drove solid results in the quarter in which we completed a complex separation,” said eBay Inc. President and CEO Devin Wenig. “We also marked eBay’s 20th anniversary and made progress on executing our strategy to reposition the company to deliver stable and profitable long-term growth.”

eBay Inc.’s commerce platforms continued to increase the role they play in global commerce, with an Active Buyer base that grew 5% year over year, to 159 million. GMV in the quarter was $19.6 billion, a 6% increase on an FX-Neutral basis and a 2% decline on an as-reported basis, reflecting the continued impact of a strong U.S. dollar. In the U.S., GMV grew 3%, a one point acceleration versus the prior quarter, and International GMV increased 7% on an FX-Neutral basis, while it was down 5% on an as-reported basis. Total revenue in the quarter of $2.1 billion was up 5% on an FX-Neutral basis and down 2% on an as-reported basis.

For Q4, eBay expects revenues “between $2,275 million to $2,325 million, representing FX-Neutral growth of 3% – 5%.” They see Q4 earnings ranging between 47 and 49 cents per share. For the entire year, eBay sees currency neutral revenue growth of 3% to 5%, and earnings ranging between $1.80 and $1.82 per share.

The shares have been up as much as 10% after hours.

Posted by on October 21st, 2015 at 4:18 pm


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