(Reuters) - Online retailer eBay Inc reported better-than-expected quarterly revenue and raised its sales forecast for the year as efforts to revamp its online marketplace start to pay off.
EBay shares were up 8 percent after the bell on Wednesday after the company’s board also authorized an additional $2.5 billion stock buyback program.
The company, which spun off PayPal last July, has tackled slowing growth by focusing on small business sellers, while offering a bigger selection of products.
Gross merchandise volume, or the total value of all goods sold on its sites, was up 4 percent at $20.9 billion in the second quarter ended June 30, helped by strength in its U.S. business.
The number of active buyers rose 4 percent to 164 million.
The company’s revenue also got a boost from robust sales at Stubhub, which won a 6.5 year revenue-sharing deal to resell tickets for the New York Yankees last month.
Stubhub’s revenue jumped 40 percent to $225 million in the latest quarter.
EBay raised its full-year revenue forecast to a range of $8.85 billion to $8.95 billion, from $8.6 billion to $8.8 billion; and adjusted profit from continuing operations in the range of $1.85 to $1.90, from $1.82 to $1.87 per share.
The improved forecast was a “positive surprise” this early in the year, Wedbush Securities analyst Gil Luria said.
For the third quarter, the company forecast revenue of $2.16 billion to $2.19 billion and adjusted profit from continuing operations of 42 to 44 cents per share.
Analysts on average expect profit of 44 cents per share and revenue of $2.14 billion, according to Thomson Reuters I/B/E/S.
The company’s net income rose to $435 million, or 38 cents per share, in the latest quarter from $83 million, or 7 cents per share, a year earlier.
Excluding one-time items, eBay earned 43 cents per share, beating analysts’ expectations by 1 cent.
Revenue rose 5.7 percent to $2.23 billion, ahead of analysts’ average estimate of $2.17 billion.
Up to Wednesday’s close, shares of the San Jose, California-based company had fallen 5.6 percent in the past 12 months.
Reporting by Anya George Tharakan and Arunima Banerjee in Bengaluru; Editing by Anil D'Silva