eBay Climbs on Strong Earnings Growth

eBay reported quarterly results after the market closed that were slightly better than analyst estimates. Here’s what investors need to know.

Tamara Walsh
Tamara Walsh
Jul 16, 2014 at 5:00PM
Consumer Goods

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.