EBay pleases investors with mediocre quarter

Ebay Reports Quarterly Earnings
SAN JOSE, CA - JANUARY 22: A sign is posted in front of the eBay headquarters on January 22, 2014 in San Jose, California. eBay Inc. will report fourth quarter earnings today after the closing bell. (Photo by Justin Sullivan/Getty Images)
Photo by Justin Sullivan—Getty Images

(Reuters) – EBay reported quarterly revenue and profit above analysts’ average estimate on Wednesday as its marketplaces business performed better than expected, sending its shares soaring in after-hours trading.

The quarterly results were the first for the company since it spun off its PayPal business in July.

EBay, whose shares were up 8.6% in extended trading, faces intensifying competition across its businesses without PayPal, a leader in the fast-growing digital payment processing market.

PayPal (PYPL), formerly eBay’s main growth engine, became a separate company on July 18.

EBay’s competitors include not only Amazon but a growing coterie of brick-and-mortar retailers such asWalmart, Target and Macys which are investing to boost their online presence.

EBay’s net revenue fell to $2.1 billion in the third quarter ended Sept. 30 from $2.15 billion in the same quarter last year.

Analysts on average had expected revenue of $2.09 billion.

Net income fell to $539 million, or 45 cents per share, from $673 million, or 54 cents per share, a year earlier.

Excluding items, the company posted adjusted earnings per share of 43 cents, compared with the average estimate of 40 cents, according to Thomson Reuters I/B/E/S.

Gross merchandise volume fell 2%, including the effect of currency rates. Volume grew 6% on an forex-neutral basis.

The company’s shares (EBAY) closed at $24.21.

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