eBay (NASDAQ: EBAY) once again surprised Wall Street on Tuesday by reporting stronger-than-expected earnings results in the first quarter. Income, on an adjusted basis, grew 26% to 67 cents per share, 4 cents higher than what the Street anticipated.
On a reported basis, net income grew to 57 cents per share from 40 cents per share in the comparable year-over-year quarter.
Despite a 4% slip in gross merchandise volume, revenue increased 2% to $2.6 billion. Analysts had projected Q1 revenues of $2.58 billion. In the quarter, eBay grew global active buyers by 4% across its platforms to 180 million.
Following the announcement, EBAY shares jumped 6% during after-market trading on Tuesday. eBay stock has fallen 13% in the trailing 52 weeks.
The e-commerce giant has recently come under fire for its underperforming units – online ticket sales platform StubHub and Classified Ads. Earlier this year, activist investor groups Elliott Management and Starboard Value had asked eBay to consider divesting both the platforms.
While the San Jose, California-based firm had last month agreed to certain other demands set by the investment groups including the appointment of two independent directors, the company is yet to respond on what it plans to do with these two units.
Buoyed by the strong first-quarter results, eBay raised its 2019 revenue and EPS guidance. The company now expects full-year net revenue between $10.83 billion and $10.93 billion. GAAP EPS from continuing operations is projected in the range of $1.94 – $2.04. Excluding one time costs, this is expected to be in the range of $2.64 – $2.70.
For the second quarter, eBay expects net revenue between $2.64 billion and $2.69 billion. GAAP EPS is projected in the range of $0.41 – $0.45 and non-GAAP EPS in the range of $0.61 – $0.63.
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