eBay Earnings Ahead of PayPal Split
eBay reported mixed second-quarter financial results before the markets opened Thursday, but shares rose to a new high.
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eBay Inc. (NASDAQ: EBAY) reported its second-quarter financial results before the markets opened Thursday. The company had $0.76 in earnings per share (EPS) on $4.4 billion in revenue. That compared to Thomson Reuters consensus estimates of $0.73 in EPS on $4.49 billion in revenue. In the second quarter of the previous year, eBay posted EPS of $0.69 and revenue of $4.37 billion.
The company generated $1.1 billion in operating cash flow from continuing operations and $688 million in free cash flow from continuing operations during the second quarter of 2015.
At the end of the second quarter, cash and cash equivalents and non-equity investments totaled $15.1 billion.
eBay and Paypal will separate on Friday, July 17.
PayPal expects net revenues to grow 15% to 18% on an foreign exchange-neutral basis, with EPS in the range of $1.23 to $1.27.
John Donahoe, president and CEO of eBay, said:
We are very pleased with our overall Q2 performance. PayPal and eBay both delivered strong Q2 results and have strong momentum. Dan, Devin and their respective teams are executing well and are prepared to create the next great chapter for PayPal and eBay.
Dan Schulman, PayPal’s president, said:
We continue to gain share globally in an incredibly dynamic market and I’m especially proud of our deepening engagement with our customers. As an independent company we will continue to lead the transformation of the payments industry by giving people better ways to move and manage their money. I’d like to thank Devin and his team at eBay, who will continue to be key partners for PayPal in the future.
Shares of eBay rose about 5% to a new multiyear high of $66.71 Thursday morning, brushing past the consensus analyst price target of $64.36. The stock has a 52-week low of $46.34.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
