EBay beats expectations, raises outlook
SAN FRANCISCO (Reuters) - Online auction leader eBay Inc. (EBAY.O) reported on Wednesday quarterly results that beat Wall Street expectations and said its outlook for the rest of the year would be at the high end of analysts' predictions.
Shares of eBay jumped as much as 6 percent after the company posted a 52 percent jump in net profit on a 27 percent revenue rise, led by growth in its core auctions business and the rising prominence of international sales.
"I would say it was a very strong quarter across the board," Chief Executive Meg Whitman said in an interview. "We are actually accelerating our organic growth rate, excluding the impact of foreign exchange and acquisitions."
"I think we feel very good about the remainder of the year," Whitman said. "We raised guidance, both top- and bottom-line."
For the year, it predicted revenue in a range of $7.2 billion to $7.45 billion -- right in the middle of Wall Street forecasts, according to Reuters Estimates. That beat eBay's previous 2007 revenue forecast of $7.05 billion to $7.3 billion.
EBay forecast full-year earnings per share of $1.30 to $1.34 -- at the top end of analysts' predictions, which ranged from $1.27 to $1.34, based on Reuters Estimates data.
"Overall it was a good report card," said Martin Pyykkonen, an analyst with Global Crown Capital. "The full year (revenue forecast) is up $150 million," he said. "That's a nice bump considering they still have three quarters to go in the year."
"These are positive numbers versus expectations, which should be good for the stock," Stifel Nicolaus analyst Scott Devitt said.
Net income for the recently ended first quarter rose to $377 million, or 27 cents per diluted share, compared with $248.3 million, or 17 cents per diluted share, a year earlier.
Excluding stock-based compensation and acquisition costs, profit rose 34 percent to $460 million, or 33 cents per share.
Revenue rose to $1.77 billion from $1.39 billion. The split between U.S. and international revenue is now 50/50, a shift since a year ago when the United States accounted for 54 percent of revenue and 46 percent was generated overseas.
The results outstripped Wall Street forecasts. Analysts had predicted an average net profit of 24 cents per share, according to Reuters Estimates. Excluding one-time items and option costs, analysts expected a profit of 30 cents a share.
Wall Street was looking for first-quarter revenue, on average, of $1.72 billion. Forecasts ranged from $1.69 billion to $1.77 billion, Reuters Estimates data showed.
Net revenue from its marketplaces business grew 23 percent to $1.25 billion. Registered users rose 21 percent to 233 million around the globe.
Net revenue at online payments service PayPal grew 31 percent to $439 million, while the number of registered users of the credit card alternative rose 36 percent to 143 million.
Merchant services, the PayPal unit that supplies online payment services to Web sites beyond eBay's own properties, reported payment volumes grew 51 percent to $4.38 billion.
Competition from rival merchant payment system Google Checkout appears to be continuing to help drive PayPal's own growth, Whitman said. "Amazingly enough, we had 51 percent growth. The interest in this category is helping (PayPal)."
Shares of eBay dipped 2.1 percent ahead of the report to close at $34.55 on Nasdaq.
The stock rebounded after publication of the results, rising 6 percent before settling back to $35.70, up 3.6 percent in extended trade. At the close of the regular session, eBay was up 14.6 percent in the year to date.
