eBay Shares Hit 52-Week High After Report

eBay shares set a new 52-week high on Friday after the company reported better-than-expected fourth-quarter earnings and boosted its 2003 guidance.

Shares in the online auction company gained $3.60, or 5%, to $74.85 on the Nasdaq national market Friday. Earlier in the day, the company's shares hit $75, topping their previous 52-week high of $74.80, set on Monday.

On Thursday, eBay reported that its fourth-quarter revenue grew 89% compared with the same period in 2001 to $413.9 million. Meanwhile, the San Jose, Calif.-based company more than tripled its earnings, seeing them rise from $25.9 million, or 9 cents per share, in the year-ago quarter to $87 million, or 28 cents per share, in the just-completed quarter.

On a pro forma basis, excluding stock-based compensation and the sale of certain assets, the company posted a profit of 28 cents per share. That bested Wall Street expectations; analysts surveyed by Thomson Financial/First Call had expected the company to earn 24 cents a share on a pro forma basis.

The company's revenue was helped by its overseas operations as well as its recently acquired PayPal division, both of which saw huge growth in the quarter. The sale of its Kruse International unit, some real estate properties and an equity stake in a private company also boosted eBay's bottom line by about $17.5 million, or 6 cents per share.

eBay shares have now risen about 48% since early October when they began their latest climb. The company's shares are trading at about 88 times 2002 earnings and about 67 times its projected 2003 earnings.