eBay Stock Gaining on Q2 Earnings and Revenue Beat

eBay stock is advancing in after-hours trading on Wednesday after releasing better than expected fiscal 2016 earnings per share and revenue.
By Natalie Walters ,

NEW YORK (TheStreet) -- Shares of Ebay (EBAY) - Get Report  are gaining 1.85% to $26.99 in after-hours trading on Wednesday after reporting a 2016 second quarter earnings and revenue beat. 

After the market close, the San Jose-based e-commerce site reported adjusted earnings of 43 cents per share, a 2% increase from last year and above analysts' estimates of 42 cents per share. 

Revenue increased 7% year-over-year to $2.23 billion in the most recent period, beating analysts' projections of $2.17 billion. 

"Q2 was another good quarter where we delivered strong results and had acceleration in growth," Devin Wenig, CEO of eBay, said. "We are now one year into executing our strategy to provide the best choice, the most relevance and the most powerful selling platform, and there are signs of momentum in our business."

For the third quarter, eBay expects to report earnings between 42 cents and 44 cents per share on revenues between $2.16 billion and $2.19 billion. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate EBAY INC as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share and revenue growth. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and generally higher debt management risk.

You can view the full analysis from the report here: EBAY

EBAY

data by

YCharts

Loading ...