eBay Inc & International Business Machines Jumps After Earnings (EBAY, IBM)

Late Wednesday two tech bellwethers eBay Inc (NASDAQ:EBAY) and International Business Machines Corp.(NYSE:IBM)reported better than estimated earnings. Shares of both the company witnessed solid gains in after hours.

eBay Inc (NASDAQ:EBAY) shares increased 5.22% to $42.57 in the after hour trading after the company said that both its core business and its PayPal payments unit have continued to turn in strong performances.

Get Instant Updates in your Inbox By Free Sign Up HERE

The company posted second-quarter profit of $692 million, or $0.53 a share, on $3.4 billion in revenue. During the same period a year ago, the company earned $283 million, or $0.22 a share on $2.8 billion in sales. Adjusted earnings were $730 million, or $0.56 a share. Analysts had forecast eBay to earn $0.55 a share, excluding one-time items, on revenue of $3.36 billion.

Looking forward, the company expects third quarter net revenues in the range of $3.300 billion-$3.400 billion, GAAP earnings per diluted share in the range of $0.42-$0.44 and non-GAAP earnings per diluted share (EPS) in the range of $0.53-$0.55. Analysts are expecting the company to report revenue of $3.410 billion and EPS of $0.55 for third quarter of 2012.

International Business Machines Corp.(NYSE:IBM) shares gained 2.82% to $193.55 in the after hour trading after the company posted better-than-expected earnings, despite falling short of revenue expectations.

Get Latest Updates on Earnings News For Free

The company reported a second-quarter profit of $3.88 billion, or $3.34 a share, as compared with a profit of $3.66 billion, or $3 a share, for the year-earlier period. Revenue was $25.8 billion, down from $26.7 billion. Adjusted operating profit was $3.51 a share. Analysts were expecting the company to report a profit of $3.43 a share, on revenue of $26.3 billion.

Looking forward, the company expects fiscal 2012 GAAP diluted earnings per share to at least $14.40 from at least $14.27 and operating (non-GAAP) diluted earnings per share (EPS) to at least $15.10 from at least $15.00. Analysts are expecting the company to report EPS of $15.06 for fiscal 2012.