Market Overview

eBay Soars in After Hours Trade on Strong Q1 Earnings

eBay (NASDAQ: EBAY) released its fiscal first quarter earnings results after the closing bell on Wednesday. The company reported net income of $570 million or $0.44 per share, compared to $476 million or $0.36 per share, in the year ago period.

On an adjusted basis, which is comparable to analysts' consensus, EBAY reported net income of $725 million or $0.55 per share, versus $619 million or $0.47 per share, in last year's corresponding quarter. This compared to Wall Street analysts' consensus EPS estimates of $0.52.

Net revenue in the quarter was up 29% to $3.28 billion versus $2.55 billion in last year's first quarter. This compared to analysts' consensus revenue estimates of $3.15 billion.

Revenues in the company's Payments unit, which includes PayPal, rose 32% year over year to $1.31 billion.

Operating margins at EBAY contracted from 22.2% last year to 19.9%. On a non-GAAP basis, operating margins were 26.9% versus 29.4% in the year ago quarter.

Looking ahead, EBAY guided for second quarter net earnings between $0.49 to $0.51 per share and adjusted net earnings of $0.53 to $0.55 per share.

Revenues in Q2 are expected to be between $3.25 and $3.35 billion. Currently, analysts are projecting that the company will report earnings per share of $0.54 on revenue of $3.36 billion in Q2.

For fiscal 2012, EBAY is now guiding for net earnings of $1.91 to $1.96 per share and adjusted earnings of $2.30 to $2.35 per share. Revenues are expected to be between $13.80 billion and $14.10 billion.

Previously, the company had guided for net earnings of $1.91-$1.96 per share, adjusted earnings of $2.25-$2.30, and revenues of $13.70-$14.00 billion.

In Wednesday's after hours trading session, EBAY shares are trading up 7.58% to $38.59.

Posted-In: Earnings News Guidance After-Hours Center Movers

 

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