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EBay’s profit rises, beats estimate

Web marketplace eBay Inc. Wednesday posted a 28 percent rise in first-quarter net profit, beating Wall Street estimates, but it set targets for future quarters in line or below analysts' views.
/ Source: Reuters

Web marketplace eBay Inc. posted Wednesday a better-than-expected 28 percent increase in first-quarter net profit, but it set targets for future quarters at or below analysts’ views.

San Jose, California-based eBay had net income of $256.3 million, or 19 cents per share, compared with net income of $200.1 million, or 15 cents, last year.

Excluding items, the company had a profit of 20 cents a share. Analysts, on average, had expected net income of 17 cents a share and earnings excluding items of 18 cents a share, according to Reuters Estimates.

Revenue rose to $1.03 billion from $756.2 million a year earlier, fueled by growth in its core eBay business and its online payment service PayPal, to land in line with analysts’ consensus revenue target.

EBay forecast second-quarter net earnings of 16 cents a share -- a penny lower than analysts’ consensus estimate. Its call for earnings excluding items was 18 cents a share, matching analysts’ target.

The San Jose, California-based company forecast third-quarter net earnings of 16 cents to 17 cents per share and earnings excluding items of 18 cents to 19 cents per share. Analysts polled by Reuters Estimates had called for net earnings of 17 cents a share and earnings excluding items of 18 cents.