eBay Reports 11% Growth In Q1 Profit, Offers Weaker-Than-Expected Q2 Outlook
Shares of eBay (NASDAQ: EBAY) are lower by 3.7 percent to $52.50 in Tuesday's post-market session despite a beating first quarter estimates and announcing the company repatriated $6.0 billion net in foreign earnings.
The company reported quarterly earnings per share of $0.70 versus the $0.67 analyst consensus estimate. Revenue came in at $4.26 billion versus $4.23 billion estimate. Revenue was up 14 percent year over year.
eBay said first-quarter net total payment volume grew 27 percent and mobile e-commerce volume grew 70 percent to $11 billion, representing 19 percent of volume.
PayPal gained 5.8 million new active registered accounts, up 16 percent to end the the quarter at 148 million.
"We are committed to delivering sustainable shareholder value and focusing on what matters most to our investors. We are executing our growth plans, capitalizing on the synergies in our portfolio and aggressively executing our $5.0 billion share buyback program. Today, we also announced a non-cash tax charge to facilitate repatriation of $6.0 billion net in foreign earnings, increasing our available U.S. cash and enhancing our financial flexibility,” said President and Chief Executive Officer John Donahoe.
The drop in eBay shares may be attributed to weak second-quarter adjusted earnings per share in the range of $0.67 to $0.69. Analysts are currently forecasting EPS of $0.70. The company reaffirmed its FY sales and profit outlook.
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