eBay Shares Rises After Hours Following Q2 Results

NEW YORK (The Street) -- eBay (EBAY) shares rose after-hours on the back of in-line quarterly results Wednesday.

The San Jose, Calif.-based eBay reported non-GAAP earnings of 69 cents a share on $4.4 billion revenue, up from $4.2 billion in the prior quarter. Analysts surveyed by Thomson Reuters were expecting 68 cents a share on $4.4 billion in sales.

Shares rose in after-hours trading Wednesday, gaining 1.34% to $51.38.

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PayPal continued to be the driving force for eBay, as reported PayPal net total payment revenue grew to $1.9 billion and PayPal payment volume grew 29% with Merchant Services volume up 35%. Despite a security breach of the auction and global retailer in February, eBay's PayPal gained 4.0 million new active registered accounts to end the quarter at 152 million, up 15%.

EBay President and CEO John Donahoe addressed the hacking of ecommerce in the report, looking ahead to PayPal's expansion.

"In a challenging second quarter, our commerce and payments platforms delivered strong enabled commerce volume growth of 26 percent," Donahoe said in the press release. "PayPal generated another strong quarter while eBay's growth was hampered by its global password reset for all users. We continued our momentum in the four competitive commerce battlegrounds of mobile, local, global and data. We delivered new experiences for PayPal and eBay customers, extended PayPal and eBay into new markets, made it simple and easy for developers to integrate PayPal and offered new ways to help merchants grow."

The company also noted that Marketplaces gross merchandise volume (GMV) grew 12%, as revenue grew to $2.2 billion. The company ended the quarter with 149 million active buyers, up 14%, according to the press release.

For the third-quarter, eBay said it expects non-GAAP earnings to be between 65 cents and 67 cents a share, with sales expected to be between $4.3 billion and $4.4 billion. Analysts surveyed by Thomson Reuters expect the company to earn 70 cents a share on $4.4 billion in sales.

--Written by Kathryn Mykleseth in New York

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