EBay Inc. delivered a strong quarter with rising revenues that beat analyst expectations. The online retailer also crossed the one billion live listings mark for the first time.
Sales for the three months ending June 30 increased 6 percent to $2.2 billion from $2.1 billion a year earlier. Net income for the second quarter fell 4 percent to $496 million, or 43 cents a diluted share, down from $517 million, or 42 cents, a year ago. While income was down, the earnings topped the FactSet estimate of 42 cents per share. That helped push the stock up more than 4 percent in after-hours trading to $28.15.
“Q2 was another good quarter where we delivered strong results and had acceleration in growth,” said Devin Wenig, president and chief executive officer. “We are now one year into executing our strategy to provide the best choice, the most relevance and the most powerful selling platform, and there are signs of momentum in our business.
Drilling down into categories, marketplace revenue grew by 3 percent, while StubHub revenue jumped by 40 percent. The Classifieds platform revenue increased by 15 percent driven by cars and real estate including Germany and Canada.
GAAP operating margin increased to 23.8 percent versus last year’s 20.3 percent for the same period. Non-GAAP operating margin decreased to 29.1 percent versus last year’s 32.1 percent.
Looking ahead at the third quarter, eBay is forecasting net revenue between $2.16 billion and $2.19 billion, representing growth of 5 to 6 percent. Earnings per share are projected to be in the range of 42 to 44 cents per diluted share. This is at the low end of the FactSet estimate for earnings of 44 cents per share in the third quarter.
For the full year 2016, eBay is projecting net revenue between $8.85 billion and $8.95 billion and diluted earnings per share in the range of $1.85 to $1.90.
EBay bought back $500 million of stock during the quarter and the board also authorized an additional $2.5 billion share repurchase. EBay stock is down almost 2 percent year-to-date, but in the last month it has risen more than 9 percent.