What: Shares of eBay (NASDAQ:EBAY) rose 33.1% in July, according to data provided by S&P Global Market Intelligence. The company's second-quarter results beat analyst estimates across the board, and the company announced a new share buyback program and higher guidance for the full year.
So what: eBay reported second-quarter revenue of $2.23 billion, up 6% year over year and about $60 million higher than the average analyst estimate. Gross merchandise volume grew 6% on a constant currency basis to $20.9 billion. eBay had more than 1 billion live listings during the second quarter, the first time the company has surpassed that mark.
Non-GAAP EPS came in at $0.43, up from $0.42 during the prior-year period and $0.01 higher than analysts expected. Non-GAAP net income declined 4% year over year, with share buybacks driving the EPS growth. The company had 164 million active buyers during the second quarter, up from 157 million during the prior-year period.
eBay spent $500 million on share buybacks during the second quarter, and the company announced a new $2.5 billion authorization.
Now what: eBay expects to produce $8.85 billion to $8.95 billion of revenue during 2016, up from a previous range of $8.6 billion to $8.8 billion. Non-GAAP EPS is expected in the range of $1.85 to $1.90.
eBay produced a solid quarter, growing revenue at a faster pace than expected. CEO Devin Wenig reiterated the company's strategy:
Q2 was another good quarter where we delivered strong results and had acceleration in growth. We are now one year into executing our strategy to provide the best choice, the most relevance and the most powerful selling platform, and there are signs of momentum in our business. We continue to invest in our platforms to ensure eBay is a global commerce leader for years to come.