Shares of eBay Inc. (NASDAQ: EBAY) jumped up 11.41% to $30.07 on Thursday after the company reported better than expectation quarterly revenue and increased its sales outlook for the year as efforts to revamp its online marketplace start to pay off. EBay also mentioned that it would buy back more of its shares.
According to the earnings announcement, revenue for the second quarter was $2.2 billion which increased 7% on a foreign exchange neutral basis and 6% on a reported basis. Strong revenue driving net income from continuing operations of $437 million, or diluted earnings per share of $0.38. During the second quarter, eBay produced $764 million of operating cash flow and $617 million of free cash flow from continuing operations while also repurchasing $500 million of its common stock.
“Q2 was another good quarter where we delivered strong results and had acceleration in growth,” said Devin Wenig, President and CEO of eBay Inc. “We are now one year into executing our strategy to provide the best choice, the most relevance and the most powerful selling platform, and there are signs of momentum in our business. We continue to invest in our platforms to ensure eBay is a global commerce leader for years to come.”
EBay has struggled to keep pace with other online retailers, particularly since spun off PayPal, even it appears buyers are again returning to the website. The online retailer stated it had 164 million active buyers on the website which increased 1.23% from last quarter’s 162 million.
For the third quarter guidance, the company outlook revenue of $2.16 billion to $2.19 billion and adjusted earnings per share from continuing operations of $0.42 to $0.44. According to Thomson Reuters, analysts on average expect earnings per share of $0.44 and revenue of $2.14 billion.