Internet commerce company Ebay Inc beats the expectations of speculators with strong Q2 results with net profit of $412 Million. Ebay share rose 3.6% hours after company predicted that PayPal results would strong throughout the year. For Q2 company has booked $2.2 Billion in revenue. The company had a 15 percent gain in adjusted revenue, which excluded Skype, eBay’s former Internet telephone unit, which it recently sold.
Ebay’s net profit was $412 million, or 31 cents per share, compared with $327 million, or 25 cents per share, a year ago. Ebay’s earnings “reflect both the recovery in the economy and the company’s effort to move toward fixed price offerings,” said Benchmark Capital’s Fred Moran. Net revenue rose 6 percent to $2.2 billion. Analysts, on average, had expected revenue of $2.16 billion, according to Thomson Reuters I/B/E/S.
Chief Executive John Donahoe told analysts on a conference call the company was “cautious for the second half of the year in the United States in terms of the macro environment.”
EBay has been striving to convince investors that, midway through a three-year turnaround, it is improving its marketplaces unit. That unit joins sellers with buyers and now focuses mostly on full-price, rather than auction-type, sales.
“Users are coming back more frequently and they’re buying more. That is leading to new users,” Donahoe said. But he added that he was not satisfied with marketplace division results in the United States, the company’s “toughest and most competitive market.”
“However, we remain confident our turnaround is on track,” he said.