eBay Climbs on Strong Earnings Growth

Investors pushed shares of eBay (NASDAQ: EBAY  ) higher in after-hours trading today, after the company reported second-quarter earnings that beat expectations. For the period ended June 30, eBay's revenue climbed 13% to $4.4 billion, which was slightly better than the $4.3 billion analysts were expecting. The company's profits in the quarter also trumped Wall Street's estimates. eBay generated second-quarter non-GAAP earnings of $0.69 per diluted share. That topped the Street's EPS forecast of $0.68.

eBay's e-commerce platform looked particularly strong in the quarter, with enabled commerce volume increasing 26% to $62 billion in the quarter. That's encouraging, given the massive security breach eBay suffered recently, which ended in eBay's request that all of its global users reset their passwords. "In a challenging second quarter, our commerce and payments platforms delivered strong enabled commerce volume growth of 26%," said John Donahoe, eBay's chief executive.

Meanwhile, the company's PayPal business appeared robust, as revenue from the unit swelled to $1.9 billion in the period. It's also worth noting that PayPal added 4 million new active registered accounts in the second quarter. PayPal now boasts 152 million registered accounts worldwide.

Also during the quarter, eBay repurchased 32.4 million shares at a value of $1.7 billion. The stock was trading higher by more than 1% on that news after the market closed.


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