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Strong PayPal Growth Leads eBay (EBAY) to Strong Q2 EPS Results; Outlook Remains Tepid

July 18, 2012 4:41 PM
Shares of online retailer eBay (Nasdaq: EBAY) are higher in after-hours trading today, following a quarterly report which saw ho-hum results and guidance.

Overall, revs rose 23 percent from the same period last year to $3.398 billion, led by a 26 percent increase in Payments segment top-line growth. Overall, the Street was looking for revs of $3.36 billion in the quarter.

Adjusted net income rose 16 percent to $730 million, or 56 cents per share, from $631 million in Q2111. The Street was looking for EPS closer to 55 cents.

Estimize consensus views were a little rich, seeing sales of $3.41 billion and EPS of 57 cents for eBay.

Non-GAAP operating margin compressed 30 basis points to 27.3 percent.

On PayPal, the segment ended the second quarter with 113.2 million active registered account, up 13 percent year over year. The 26 percent increase in revs was largely attributed to increased penetration on eBay as well as continued merchant and consumer adoption and strong growth in Bill Me Later.

Looking ahead, eBay sees third-quarter EPS of 53 cents to 55 cents, compared with expectations of 5 cents. Fiscal 2012 EPS expected to be $2.30 to $2.35, to the lower-end of the $2.35 consensus.

Shares are about 5 percent higher late Wednesday.

Categories

Earnings Guidance