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 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.
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.