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.
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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.
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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.