EBay Delivers Better-Than-Expected Profit
EBay Inc. reported a better-than-expected profit for the second quarter as revenue more than doubled, despite repeated troubles with the online auctioneer’s computer server that stymied would-be bidders.
EBay said its profit before merger- and compensation-related expenses was $5.1 million, or 4 cents a share, down slightly from $5.2 million, or 5 cents, a year earlier.
Revenue soared to $49.5 million from $19.5 million.
The San Jose-based retailer said it expects to continue spending on promotion, equipment, new businesses and personnel in its effort to stay ahead of rivals. Sales and marketing expenses more than tripled in the quarter.
Analysts were expecting earnings of 3 cents a share, according to First Call Corp. Unofficial estimates ranged from 3 cents to 6 cents on EarningsWhispers.com, StreetIQ.com and WhisperNumber.com.
EBay had 5.6 million registered users as of June 30, up 46% from the previous quarter.
In after-hours trading, EBay shares rose to $110.25 after falling $3.44 to $104.38 in regular trading on Nasdaq.
EBay reported its results after the markets closed.
At a Glance
Other earnings, excluding one-time gains and charges unless noted:
* Airborne Freight Corp.’s net income fell to $27 million, or 55 cents a share, beating lowered estimates of 50 cents. Sales rose 2% to $779.3 million.
* American Express Co. said profit rose 12% in the second quarter to $646 million, or $1.41 a share, a penny higher than estimates, as customers used its credit cards more often and boosted investments with its financial planners. Revenue grew 12% to $4.82 billion.
* GTE Corp.’s earnings rose 15% in the second quarter to $776 million, or 79 cents a share, matching analyst estimates. Sales rose 7% to $6.3 billion, with particular strength from data, Internet and wireless services and continued cost-cutting.
