What happened

Shares of online marketplace eBay (NASDAQ:EBAY) popped on Wednesday, rising as much as 7.4%. As of 12:59 p.m. EDT, the stock's gain stood at about 6%.

The stock's rise was fueled by the company's solid third-quarter results, which featured better-than-expected earnings per share. In addition, investors are likely pleased with eBay's stronger-than-expected outlook for its fourth-quarter profitability.

eBay offices in San Jose, California.

Image source: eBay. 

So what

eBay reported third-quarter revenue of $2.65 billion, up 6% year over year and in line with the consensus analyst estimate for the key metric. Non-GAAP earnings per share was $0.56, up 19% year over year from $0.47. On average, analysts were expecting eBay to report non-GAAP EPS of $0.54.

The quarter was driven primarily by a 5% year-over-year increase in gross merchandise volume (GMV), to $22.7 billion.

"This quarter we continued to make foundational investments to improve the long-term competitiveness of our marketplace while setting the stage for significant growth opportunities," said eBay CEO Devin Wenig about the quarter in the company's third-quarter press release.

Now what

Looking ahead, eBay said it expects fourth-quarter revenue between $2.85 billion and $2.89 billion, slightly below the $2.9 billion analysts were modeling for. But management said it expected non-GAAP earnings per share to be between $0.67 and $0.69, when the average analyst estimate was calling for $0.67.

"We will continue to innovate the customer experience while executing our growth initiatives in Payments and Advertising to position eBay for future success," said Wenig in the release.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool recommends eBay. The Motley Fool has a disclosure policy.