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The market was wildly optimistic about Ebay’s (EBAY) earnings, trading the stock up a much as 5% today. It was a good play. Third quarter results took the stock up another 7% after hours to $43.67

Revenue was expected to come in at $1.83 billion for the third quarter, with earnings per share of 33 cents, according to Thomson’s consensus estimates

eBay reported record consolidated Q3-07 net revenues of $1.89 billion, representing a year-over-year growth rate of 30%. Non-GAAP operating income was $593 million, representing a year-over-year increase of 28% and 31% of net revenues. Non-GAAP net income was $564 million, or $0.41 earnings per diluted share, representing a year-over-year increase of 53%.

GAAP numbers included a write-down of Skype

PayPal net revenues totaled a record $470 million in Q3-07, representing a year-over-year growth rate of 35%.

Guidance was also strong.

Fourth Quarter 2007 — eBay expects consolidated net revenues for Q4-07 to be in the range of $2.100 billion to $2.150 billion. Non-GAAP earnings per diluted share for Q4-07 are expected to be in the range of $0.39 to $0.41. These amounts assume a US dollar to Euro exchange rate of $1.38.

Full Year 2007 — eBay now expects consolidated net revenues for 2007 to be in the range of $7.600 billion to $7.650 billion. Non-GAAP operating margin for 2007 is expected to be approximately 33%. Non-GAAP earnings per diluted share for 2007 are now expected to be in the range of $1.47 to $1.49. These amounts assume a Q4-07 US dollar to Euro exchange rate of $1.35, and actual rates through the first three quarters of 2007.

Douglas A. McIntyre