eBay Earnings: Here is What You Need to Know

eBay Earnings ReportOut of San Jose, Calif., eBay Inc. (NASDAQ: EBAY) reported its quarterly earnings after Wednesday’s market closure, and it posted numbers that beat expectations on the Street, which sent the stock up overnight and into early Thursday morning. The company reported an EPS of 56 cents, which beat estimates by 1 cent, with revenue of $3.4 billion beating by $40 million. Shares rose 1 percent upon the initial release and have spiked since, up more than 8 percent to nearly $44 per share during Thursday morning trading.

The revenue number reported was 23 percent better than its Q2 2011 figure, and its growth rate rose 15 percent over last year’s total. PayPal, which is owned by eBay, saw its revenue rise 26 percent over a year ago and its active accounts rise 13 percent to more than 113 million. PayPal’s net total payment volume was $34.5 billion, up 20 percent from a year ago.

Merchant services revenue for eBay was also significantly up, 23 percent over last year to $23 million. Net income was reported a $730 million, which was 16 percent better than Q2 of 2011.

“We delivered a great second quarter, driven by eBay Marketplaces’ best performance in years, strong growth at PayPal and strong same-store-sales growth for GSI’s large retail customers,” said eBay CEO John Donahoe. “Our entire company is strong, but we’re particularly pleased with eBay Marketplaces, which delivered its strongest organic growth in gross merchandise volume, excluding vehicles, since 2006. And mobile continues to be a game changer. We now expect eBay and PayPal mobile to each transact $10 billion in volume in 2012 — that’s more than double 2011, a staggering surge in mobile shopping and payments on devices that did not exist just a few years ago. Retail is at an inflection point, and we are helping to reshape how people around the world shop and pay.”

The report has been welcomed warmly on the Street, and that translates well for hedge funds like David Blood and Al Gore’s Generation Investment Management and Eric Mindich’s Eton Park Capital. These two funds were invested in eBay stock to the tune of $578 million combined at the end of March, though they represented a semming dichotmoy of opinions on eBay. Of the top five hedge funds in terms of stock holdings, three of them decreased their stakes during the first quarter of 2012 (by at least 15 percent), while two increased their plays (by 3 and 11 percent). Generation Investment was up 11 percent in holdings at the end of March, while Eton Park jettisoned 18 percent of its stake.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!