eBay Bid Up as Buyers Dig Results

Updated from 5:01 p.m. EDT

eBay (EBAY Quote) said its first-quarter earnings and revenue dropped from the same period last year, but the Internet auctioneer exceeded analysts' estimates for both numbers.

Following the results and a forecast that was essentially in line with expectations, shares of eBay were jumping in after-hours trading Wednesday. Recently, the stock was up 5.6% to $15.60 after a gain of 3.4% to $14.78 in the regular session.

eBay said its revenue for the quarter totaled $2.02 billion, down 8% from $2.19 billion a year earlier, mainly because of a stronger dollar and falling sales in its marketplaces business.

The company earned $357.1 million, or 28 cents a share, for the quarter, compared with $459.7 million and 34 cents a share in the prior year. Excluding items, earnings would have been 39 cents, well ahead of estimates. On average, analysts were looking for an adjusted profit of 33 cents and revenue of $1.94 billion.

While the payments division had an 11% year-over-year revenue increase to $643 million, and net total payment volume was up 10% to $15.86 billion, the marketplaces unit saw revenue fall 18% to $1.22 billion. Marketplaces consists of eBay, Shopping.com, StubHub and other sites. At Internet calling subsidiary Skype, revenue rose 21% to $153.2 million.

Aside from its earnings, eBay has been in the headlines recently saying it would pay more than $1 billion for a majority stake in South Korea-based e-commerce operation Gmarket (GMKT Quote) and also that it plans to spin off Skype in an initial public offering next year.

For the second quarter, eBay projected revenue of $1.85 billion to $2.05 billion and earnings, before items, of 34 cents to 36 cents a share. Analysts are expecting $1.98 billion on the top line and a profit of 35 cents.