EBay Earnings Hit Estimates, Investors Unimpressed
The company reported a net income of $412.2 million, an 18% increase from last year's quarter. In addition to its well-known online auction site, it operates e-commerce websites and online payments business PayPal.
Analysts expected the company to report earnings of 39 cents per share on revenue of $2.17 billion. In the year ago period, the company reported earnings of 37 cents per share on revenue of $2.10 billion. In last year's second quarter, the company reported a net income of $398 million or 30 cents a share.
EBay's stock finished at $119.68 on Wednesday, down 71 cents. In after-hours trading, following the earnings announcement, the stock was down 8%, despite beating estimates, as investors were hoping for an even stronger quarter.
The company is focusing international markets to continue growing and recently signed deals to expand in Japan and Singapore. The company is also continuing to develop its mobile applications, and recently announced the availability of its mobile application for handsets on Google's Android.
"We delivered strong second quarter results, demonstrating the global strength and increasing diversity of our business," said John Donahoe, eBay Inc. President and CEO. "Our eBay turnaround remains on track, with strong performance in Europe, significant changes in the U.S. and continued improvements to the buying and selling experience."