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Online auction company EBay beats expectations as profit increases 24 percent

Online auction company EBay beats expectations as profit increases 24 percent

EBay Inc. reported Wednesday that fourth-quarter profit increased 24 percent from the same period last year, trouncing Wall Street estimates and prompting executives to raise estimates for the current quarter.
Thanks to scorching holiday sales _ particularly in eBay's traditional strongholds of the United States, United Kingdom and Germany _ the San Jose-based online auction company earned $349 million (euro268.36 million), or 25 cents per share, for the three months ended Dec. 31. It earned $279 million (euro214.53 million), or 20 cents per share in the year-ago period.
EBay shares increased $1.38, or nearly 5 percent, to close Wednesday at $30 on the Nasdaq Stock Market before the earnings report was released. It jumped $2.23, or more than 7.5 percent, in after-market trading.
Fourth-quarter revenue totaled $1.72 billion (euro1.32 billion), up 29 percent from $1.33 billion (euro1.02 billion) in the year-ago period.
Excluding charges unrelated to ongoing operations, eBay earned $431 million (euro331.41 million), or 31 cents per share, up nearly 27 percent from the same quarter last year, when eBay earned $340 million (euro261.44 million), or 24 cents per share.
On that basis, which does not comply with generally accepted accounting principles, eBay was expected to earn $402 million (euro309.11 million), or 28 cents per share, on sales of $1.67 billion (euro1.28 billion), according to analysts polled by Thomson Financial.
During the holiday quarter, more than 81 million active eBay users exchanged $14.4 billion (euro11.07 billion) in goods, ranging from pricey real estate and computer servers to Pez dispensers and clothing.
EBay President and Chief Executive Meg Whitman said the company raised first-quarter 2007 sales guidance to a range of $1.67 billion (euro1.28 billion) to $1.72 billion (euro1.32 billion). Excluding special items, eBay expects earnings per share to be in the range of 28 cents to 30 cents per share.


Updated : 2021-04-20 16:39 GMT+08:00