eBay Inc (NASDAQ: EBAY) said on Wednesday its adjusted earnings and revenue in the fiscal second quarter came in better than the Wall Street estimates. Shares of the company initially jumped 2.5% in after-hours trading but crashed about 4% later on.
Financial performance
eBay reported $10.73 billion of net income for the second quarter that translates to $15.68 per share. In the comparable period of last year, its net income stood at a sharply lower $746 million only or $1.05 per share.
The eCommerce giant generated most of its profit in Q2 from discontinued operations. eBay signed an agreement in Q2 to sell 80.01% of its business in Korea to e-mart for roughly $3 billion. It also sold its Classifieds business for $13.3 billion to Adevinta that also earned it a 44% ownership stake in the Norway-based company.
On an adjusted basis, the American multinational earned 99 cents a share from continuing operations. eBay generated $2.67 billion of net revenue in the recent quarter that represents an annualised growth of 14%, despite a 7% decline in gross merchandise volume. According to FactSet, experts had forecast $2.63 billion of net revenue and 96 cents of adjusted earnings per share.
Share repurchase
eBay said it had 159 million annual active buyers and 19 million annual active sellers – a 2% decline and a 5% growth, respectively.
It returned $1.6 billion in the second quarter to shareholders, including $121 million in cash dividends and $1.5 billion in share repurchases. The board of directors authorised another $3 billion of share repurchase on Wednesday.
In separate news from the United States, Vroom also reported its quarterly financial results on Wednesday.
CEO Jamie lannone’s remarks
In the earnings press release, CEO Jamie lannone said:
“Revenue growth in Q2 was driven by the acceleration in our payments migration and growth in advertising. We are simplifying our portfolio and growing our core while delivering significant shareholder value. We are focused on accelerating product innovation by harnessing the power of next-gen technology and creating a more seamless experience for sellers. We are delivering innovative category experiences for buyers and quickly evolving in our pursuit to be the best global marketplace to sell and buy.”
The post 3 key takeaways from eBay’s Q2 earnings report appeared first on Invezz.
from USA – Invezz https://ift.tt/3xyK8IE
Wajeeh Khan
Click here to Join RICH DAD SUMMIT online with ROBERT KIYOSAKI - $1 Training for Passive Income: https://bit.ly/RichDadSummitWealthTraining
0 Comments