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EBay’s Stronger Than Expected Results Sends Shares Higher

eBay CEO Devin WenigeBay CEO Devin Wenig
eBay CEO Devin WenigCourtesy of eBay

(Reuters) – EBay reported better-than-expected quarterly profit and revenue as efforts to revamp its shopping platform attracted more buyers, helping offset the impact of a strong dollar.

The company’s shares (EBAY) rose 4% after the bell on Tuesday.

EBay, which spun off its main growth engine PayPal last July, has tackled slowing growth in its core business by revamping its platform and refocusing on small-scale sellers.

The company said its gross merchandise volume, or the total value of all goods sold on its sites, rose 1% to $20.45 billion in the first quarter ended March 31.

The number of active buyers rose 3.8% to 162 million.

EBay forecast current-quarter revenue of $2.14 billion to $2.19 billion and adjusted profit from continuing operations of 40-42 cents per share.

Analysts on average were expecting revenue of $2.14 billion and profit of 44 cents per share, according to Thomson Reuters I/B/E/S.

EBay said it expected full year revenue of $8.6 billion-$8.8 billion, compared to its prior forecast of $8.5 billion-$8.8 billion.

Net income fell to $482 million, or 41 cents per share, in the first quarter ended March 31, from $626 million, or 51 cents per share, a year earlier.

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Excluding one-time items, eBay earned 47 cents per share.

Revenue rose 3.7% to $2.14 billion.

Analysts on average had expected a profit of 45 cents per share and revenue of $2.08 billion.

Shares in San Jose, California-based eBay had fallen nearly 11% this year through Tuesday.