This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

eBay Jumps as PayPal Revenue Explodes

NEW YORK ( TheStreet) --Shares of Internet giant eBay (EBAY) rose in after-hours trading, as the company saw exceptional growth in its payments division, PayPal. eBay also added $2 billion to its share buyback program.

eBay saw a huge growth in PayPal revenue, which rose 26% year-over-year, as the mobile payment story continues to play out. PayPal generated $1.357 billion for the quarter.

The San Jose, Calif.-based company reported earnings of 56 cents per share on $3.39 billion in revenue. Analysts polled by Thomson Reuters were looking for 55 cents per share in earnings on $3.41 billion in revenue.

CEO John Donahoe was particularly pleased with the quarter, as eBay Marketplace had its "best performance in years," He noted the growth at PayPal and strong same-store-sales growth for its GSI unit also helped during the quarter.

"Our entire company is strong, but we're particularly pleased with eBay Marketplaces, which delivered its strongest organic growth in gross merchandise volume, excluding vehicles, since 2006," Donahoe said in the company press release.

eBay bought back approximately $355 million worth of stock during the quarter, and the board of directors authorized an additional $2 billion buyback plan. The company ended the quarter with $7.6 billion in cash and cash equivalents, up from $7.5 billion at the end of 2011.

In addition to the earnings beat, eBay provided third-quarter and full-year guidance largely in line with analysts' forecasts. The company expects non-GAAP earnings for the third-quarter of 53 to 55 cents a share. Revenues are expected to be within a range of $3.3 billion to $3.4 billion. Analysts polled by Thomson Reuters are currently looking for a profit of 55 cents per share on $3.41 billion in revenue.

For the full year, eBay expects non-GAAP earnings of $2.30 to $2.35 with revenue ranging from $13.8 billion to $14.1 billion. Analysts are looking for $2.36 per share in earnings on $13.99 billion in revenue.

The company plans to hold a conference call at 5 p.m. EST to discuss the results.

Shares of eBay closed the regular session higher, gaining 3.6% to $40.46. Shares were reacting positively in after-hours, gaining another 4.2% to $42.14 according to Nasdaq.com.

Interested in more on eBay? See TheStreet Ratings' report card for this stock.

Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.

-- Written by Chris Ciaccia in New York

>Contact by Email.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs