EBay Inc. managed to beat Wall Street’s expectations by 1 cent for the second quarter in spite of a global password reset that hampered the commerce platform’s growth.
For the period ended June 30, the San Jose, Calif.-based company said net income rose 5.6 percent to $676 million, or 53 cents a diluted share, from $640 million, or 49 cents, a year ago. Excluding certain costs, earnings were 69 cents a share. Net revenue rose 12.6 percent to $4.37 billion from $3.88 billion. Analysts on average were expecting revenues of $4.39 billion and earnings per share at 68 cents.
In eBay’s Marketplaces business unit, sales by retailers rose 12.1 percent to $20.49 billion from $18.28 billion. By geographic region, eBay said sales by retailers in the U.S. gained 10 percent while international sales were up 14 percent. The company also noted that Marketplaces gained 3.8 million new buyers to end the quarter with 149 million active buyers, up 14 percent from the same year-ago quarter.
EBay president and chief executive officer John Donahoe said “eBay’s growth was hampered by its global password reset for all users.” The reset was necessitated by a security breach.
That said, the company’s enabled commerce volume — its measure of the transactions handled by the company — grew by 26.4 percent to $61.64 billion from $48.78 billion a year ago.
The company said it expects third-quarter diluted EPS in the range of 51 cents to 53 cents on a revenue range of $4.30 billion to $4.40 billion. For the full year, eBay forecasted diluted EPS at between 4 cents and 9 cents on a revenue guidance range of $18 billion to $18.3 billion.
Shares of eBay closed down 0.2 percent to $50.70 in Nasdaq trading, but rose 1.2 percent to $51.30 in early after-market trading following its earnings report.