EBay Exceeds Estimates, Helped by Mobile Adoption
NEW YORK (TheStreet) -- EBay(EBAY) exceeded analysts' fourth-quarter revenue and profit estimates, boosted by mobile and Marketplaces growth.
The online auction site reported revenue of $4 billion, an 18% increase from a year earlier and above analysts' forecast of $3.976 billion.
Excluding items, eBay earned 70 cents a share, up from 60 cents. Analysts surveyed by Thomson Reuters were looking for earnings of 69 cents a share.
In a statement, eBay said its earnings increase was driven by double-digit user growth across its portfolio and strong gains in mobile adoption. The company's Marketplaces business enjoyed a 19% gain in U.S. gross merchandise volume (GMV), excluding vehicles. GMV, a key metric in online retail, refers to the total sales value of items sold over a specific time frame.
Marketplaces, which was widely expected to boost eBay's fourth-quarter numbers, generated record revenue of $2 billion.
"We had a great finish to an excellent year, with fourth-quarter results exceeding our expectations," CEO John Donahoe said in the company's statement.
EBay shares, which closed up 0.8% during Wednesday's session, gained 0.9% to reach $53.55 in extended trading.
For the first quarter, eBay forecasts revenue between $3.65 billion and $3.75 billion, compared to analysts' prediction of $3.795 billion. Excluding items, the auction site expects earnings between 60 cents and 62 cents a share. Analysts surveyed by Thomson Reuters are looking for earnings of 63 cents a share.
For fiscal 2013, eBay expects revenue between $16 billion and $16.5 billion, in line with Wall Street's estimate of $16.298 billion. Excluding items, the San Jose, Calif.-based firm expects earnings between $2.70 and $2.75 a share. Analysts surveyed by Thomson Reuters have forecast earnings of $2.74 a share.
-- Written by James Rogers in New York.
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