EBay's profit beat shows there's life after PayPal
By Anya George Tharakan and Lehar Maan
(Reuters) - EBay Inc reported a stronger-than-expected quarterly profit and raised its full-year adjusted profit forecast, helping to allay concerns about the company's prospects following the spinoff of PayPal, its main engine of growth.
EBay, whose shares were up 8.5 percent after-hours on Wednesday, faces intensifying competition from rivals such as Amazon.com Inc as well as from retailers such as Wal-Mart Stores Inc that are boosting their online presence.
PayPal Holdings Inc, a leader in the fast-growing payment processing market, became a separate company on July 18.
"The worst case scenario kind of came off the table," said Steve Weinstein, a senior analyst at ITG Investment Research.
"I think the Street was preparing for something really bad."
Instead, the company raised its forecast for adjusted profit from continuing operations for the full year to $1.80-$1.82 per share from $1.72-$1.77. Analysts on average were expecting a profit of $1.78 per share, according to Thomson Reuters I/B/E/S.
The increase reflects earnings performance in the second quarter as well as the repurchase of shares and a more favorable tax rate, Chief Financial Officer Scott Schenkel said on a call.
EBay added a net 8 million new active buyers in the three months ended Sept. 30 compared with a year earlier. Continued...