eBay Fourth-Quarter Revenue Jumps Over Estimates

Company boosts stock buyback program and raises dividend on latest results
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eBay  (EBAY) - Get Report reported better-than-expected revenue and earnings for the fourth quarter, boosted its share buyback program by $4 billion, and raised its dividend after the bell Wednesday.

The company reported revenue of $2.9 billion with non-GAAP net income of $600 million, or 86 cents a share for the latest period.

eBay had been expected to report net income of $579.7 million, or 83 cents a share, on sales of $2.7 billion, based on a FactSet survey of 26 analysts.

In the same period a year ago, the company posted non-GAAP earnings of 66 cents a share on sales of $2.2 billion.

The company had offered guidance of 78 to 84 cents a share on Oct. 29. Shares have risen about 16% since then.

“We finished the year with strong financial results,” said Jamie Iannone, CEO of eBay. “We will continue to invest in product and technology in order to deliver the best marketplace in the world for our customers,” Iannone added.

In after-hours trading Wednesday, eBay shares rose $5.11, or 8.8%, to $63.15.

eBay said its board had approved a $4 billion increase in its share buyback program. The company said it had repurchased approximately $5.1 billion of its common stock in the just-completed year.

In addition, the company raised the quarterly dividend 13% to 18 cents a share, payable on March 19 to stockholders of record as of March 1.

eBay offered first-quarter guidance for revenue of $2.94 billion to $2.99 billion. It forecasted non-GAAP earnings per share of between $1.03 and $1.08.