Ebay Q2 Net Ex Items In Line With Street Views; Volume Up 26%

EBay Inc.

posted second-quarter a penny ahead of expectations on a 26 percent volume gain for transactions. The company offered a third-quarter earnings outlook below Wall Street's forecast and a prediction for the full year in line with expectations. Net profit grew 6 percent to $676 million or 53 cents a share, from year earlier $640 million, or 49 cents a share. Revenue gained 13 percent to $4.67 billion, from $3.88 billion in the year-earlier period. Excluding items, income was $0.69 a share, up 9 percent from $0.63 cents a year ago. Analysts expected earnings excluding items of $0.68 cents a share, on revenue of $4.38 billion. Volume increased 26 percent in the second quarter to $62 billion, including a 68 percent gain in mobile volume to $12 billion and a 26 percent increase in cross-border trade to $13 billion. PayPal net total payment volume grew 29 percent with merchant services volume up 35 percent and on-eBay volume up 13 percent. Revenue for the segment grew to $1.9 billion. For the third quarter, Ebay expects earnings excluding items of $0.65 to $0.67 cents a share, on revenue of $4.3 billion to $4.4 billion. Wall Street expects earnings of 70 cents a share on revenue of $4.42 billion. The company predicted 2014 adjusted earnings of $2.95 to $3 a share, on revenue of $18 billion to $18.3 billion. That compares with a consensus of $2.98 in earnings on revenue of $18.24 billion. After hours Wednesday, Ebay traded at $51.30, up 1.18 percent.