Wednesday, July 18, 2012

eBay Inc(NASDAQ:EBAY) Extends Rally in After Hours On Earnings Beat

eBay Inc(NASDAQ:EBAY) shares are extending its gains in after-hours after the largest online marketplace reported strong set of second quarterly earnings, that easily topped analysts’ views.

On an adjusted basis, the company earned $730 million, or 56 cents a share in the latest quarter, up 16% year over year and topped analysts’ target by a penny. Revenue during the quarter grew 23% year over year, again ahead of analysts’ forecast of $3.36 billion.

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Shares of the company had been under pressure recently on back of increase concern that the company’s business could be hurt due to weak economic development in the European region. But, the company confirmed that its Marketplaces business witnessed its strongest organic growth since 2006 - and highlighted "strong growth" in Europe and the Asia-Pacific region.

The company continues to expect to earn 53 cents to 55 cents on revenue range of $3.3 billion to $3.4 billion for the current quarter, although below analysts’ target of 55 cents a share on revenue of $3.42 billion.

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"We delivered a great second quarter, driven by eBay Marketplaces' best performance in years, strong growth at PayPal and strong same-store-sales growth for GSI's large retail customers," said John Donahoe, eBay Inc. President and CEO.

Shares of EBAY are up 4.57% in post market session, extending its regular session’s gain of 3.56%. So far this year, the stock has risen over 33%.

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