eBay reaps in US$1.29b profit
Friday, July 20, 2007
INTERNET auction site eBay Inc on Wednesday posted a 50 percent rise in net profit on strength in its core auction and payments businesses, but left its 2007 outlook unchanged despite Wall Street's hopes for a boost.
Revenue as well as margins for eBay's auction and fixed price marketplaces business grew, with revenue rising 26 per cent to US$1.29 billion, accelerating from a range of 22 per cent to 24 per cent growth in the prior four quarters.
"It was a good quarter for the company, highlighted by great results across the businesses," said Meg Whitman, president and chief executive of the online auction leader. "We feel real good about the rest of the year."
Net income rose to US$376 million, or 27 cents per diluted share, from the year-earlier quarter's US$250 million, or 17 cents a diluted share. Excluding one-time items and stock option costs, profits were US$471 million, or 34 cents per share, compared with US$351 million, or 24 cents per share.
Profits edged ahead of consensus forecasts. Wall Street was looking for a net profit, on average, of 26 cents per diluted share, according to Reuters Estimates. Excluding one-time items, the consensus analyst forecast was 32 cents per share.
Overall revenue rose 30 per cent to US$1.83 billion, the top end of Wall Street predictions. Analysts were looking for revenue, on average, of US$1.78 billion, according to Reuters Estimates. Forecasts ranged between US$1.71 billion to US$1.83 billion.
For the full 2007 year, eBay said it expected revenue of US$7.3 billion to $7.45 billion, within the range of existing analyst predictions, but shy of the top end of forecasts.
For the third quarter, eBay said it expected net earnings per share in a range from 25 cents to 27 cents. Excluding one-time items, it forecast a profit of 31 cents to 33 cents per share. Both figures are in line with Reuters Estimates consensus forecasts of 26 cents and 32 cents, respectively.
The San Jose, California-based company said it expected third-quarter revenue in a range from US$1.78 billion to US$1.83 billion, also squarely in line with analysts' expectations. Reuters
Revenue as well as margins for eBay's auction and fixed price marketplaces business grew, with revenue rising 26 per cent to US$1.29 billion, accelerating from a range of 22 per cent to 24 per cent growth in the prior four quarters.
"It was a good quarter for the company, highlighted by great results across the businesses," said Meg Whitman, president and chief executive of the online auction leader. "We feel real good about the rest of the year."
Net income rose to US$376 million, or 27 cents per diluted share, from the year-earlier quarter's US$250 million, or 17 cents a diluted share. Excluding one-time items and stock option costs, profits were US$471 million, or 34 cents per share, compared with US$351 million, or 24 cents per share.
Profits edged ahead of consensus forecasts. Wall Street was looking for a net profit, on average, of 26 cents per diluted share, according to Reuters Estimates. Excluding one-time items, the consensus analyst forecast was 32 cents per share.
Overall revenue rose 30 per cent to US$1.83 billion, the top end of Wall Street predictions. Analysts were looking for revenue, on average, of US$1.78 billion, according to Reuters Estimates. Forecasts ranged between US$1.71 billion to US$1.83 billion.
For the full 2007 year, eBay said it expected revenue of US$7.3 billion to $7.45 billion, within the range of existing analyst predictions, but shy of the top end of forecasts.
For the third quarter, eBay said it expected net earnings per share in a range from 25 cents to 27 cents. Excluding one-time items, it forecast a profit of 31 cents to 33 cents per share. Both figures are in line with Reuters Estimates consensus forecasts of 26 cents and 32 cents, respectively.
The San Jose, California-based company said it expected third-quarter revenue in a range from US$1.78 billion to US$1.83 billion, also squarely in line with analysts' expectations. Reuters
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