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EBay beats estimates, more shoppers are flocking to the site, shares rise

FILE PHOTO: An eBay sign is seen at an office building in San Jose, Calif., May 28, 2014. REUTERS/Beck Diefenbach

(Reuters) – EBay Inc. (EBAY).(O) beat Wall Street estimates for its quarterly revenue and profit on Wednesday, as a multi-year effort to make the platform easier to use, attracts more customers, sending its shares up 5%.

EBay will increase the competitiveness of Amazon.com Inc. (AMZN.And Walmart Inc. (WMT.N), which is focused on emerging businesses, such as advertising and billing.

The e-commerce company forecast third-quarter adjusted earnings in the range of 62 cents to 65 cents a share and revenue of $2.61 billion to $2.66 billion. Analysts had expected a profit of 63 cents on revenue of $2.68 billion, according to IBES data, Refinitiv.

San Jose, California-based eBay, announced a review of StubHub and eBay Classifieds, businesses in in March and said it would be in the name of the members of the board of directors, as part of an agreement to relieve the pressure on the board from activist investors.

EBay’s net income from continuing operations fell to $403 million, or 46 cents a share, for the second quarter ended June 30, from $638 million, or 64 cents a share, a year earlier.

With the exception of the items, the company earned 68 cents per share, beating analysts ‘ average estimate of 62 cents.

The turnover has increased by almost 2% to $2.69 billion, above estimates of $2.68 billion.

Reporting Akanksha Rana and Arjun Panchadar in Bengaluru; Editing by Bernard Orr

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