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EBay’s Shares Rise 5% on Modest Sales Gain

July 20, 2016, 8:44 PM UTC
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) – Online retailer eBay reported better-than-expected quarterly revenue and raised its sales forecast for the year as efforts to revamp its online marketplace start to pay off.

EBay shares (EBAY) were up 6.5% after the bell on Wednesday after the company’s board also authorized an additional $2.5 billion stock buyback program.

The company, which spun off PayPal last July, has tackled slowing growth by focusing on small business sellers, while offering a bigger selection of products.

The e-commerce company raised its full-year revenue forecast to a range of $8.85 billion to $8.95 billion, from $8.6 billion to $8.8 billion; and adjusted profit from continuing operations in the range of $1.85 to $1.90, from $1.82 to $1.87 per share.

The improved forecast was a “positive surprise” this early in the year, Wedbush Securities analyst Gil Luria said.

Gross merchandise volume, or the total value of all goods sold on its sites, was up 4 percent at $20.9 billion in the second quarter ended June 30.

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The company’s net income rose to $435 million, or 38 cents per share, from $83 million, or 7 cents per share, a year earlier.

Excluding one-time items, eBay earned 43 cents per share, beating analysts’ expectations by 1 cent, according to Thomson Reuters I/B/E/S.

Revenue rose 5.7 percent to $2.23 billion, ahead of analysts’ average estimate of $2.17 billion.