eBay Spikes on Earnings Beat - TheStreet

eBay Spikes on Earnings Beat

EBay beats Wall Street's estimates with the help of Skype sale and PayPal.
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Updated from Wednesday, Jan. 20

SAN FRANCISCO (

TheStreet

) --

eBay

(EBAY) - Get Report

is spiking a day after it reported better-than-expected fourth-quarter earnings, boosted by the sale of its Skype business and growth in PayPal.

During the quarter, the company earned $1.36 billion, or $1.02 a share, compared with $367 million, or 29 cents, in the year-ago period.

Excluding one-time items, eBay actually earned 44 cents a share, easily topping analysts' estimates of 40 cents.

The sale of its Skype business in contributed $1.4 billion to results. eBay sold its 70% stake in Skype in November for $1.9 billion.

Revenue climbed 16.5% to $2.37 billion from $2.03 billion last year. PayPal saw a 28% surge to $795.6 million.

At its biggest segment, which includes eBay.com, Shopping.com and other e-commerce sites, revenue rose 15% to $1.46 billion. eBay also saw active registered users increase 3% to 90.1 million.

Looking ahead, the e-retailer expects full-year 2010 earnings in the range of $1.63 to $1.68 a share. For the first quarter, eBay is predicting earnings of between 39 cents and 41 cents a share, ahead of analysts' consensus of 39 cents.

Shares of eBay are surging 9.3% in pre-market trading to $24.29, after rallying more than 8% in after-hours trading on Wednesday.

Rival

Amazon

(AMZN) - Get Report

is set to report its fourth-quarter earnings on Jan. 28.

-- Reported by Jeanine Poggi in New York.

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