EBay increases its share buyback plans, forecasts strong first quarter earnings

The eBay logo is displayed on the screen of the phone in this photo illustration in New York, New York, USA, on July 23, 2019. REUTERS/Brendan McDermid/Illustration

(Reuters) – EBay Inc has been added to the $3 billion until 2020, the share buyback plan, and forecast the current quarter’s profit above analysts ‘ expectations on Thursday, but after the completion of the sale of its StubHub ticket unit.

The company is expanding its buyback plan to $4.5 billion.

EBay is expected to post first-quarter adjusted earnings of between 72 cents and 75 cents, while analysts expected 72 cents, according to the Refinitiv of the data.

The outlook reflects the benefit of the buy-back of shares, and the investment of time, offset by the impact of the StubHub sales, the company said.

In November, 2019 at the latest, the company agreed to the sale, StubHub has to Viagogo Ltd. for $4.05 billion, it was one of the e-commerce major was under pressure from activist investors, a component that is part of a number of companies.

For the full year in the 2020s, eBay expects to post a profit in the range of $3.00 to $3.10 per share, the midpoint of which is above estimates.

EBay’s shares rose 2.4 percent in trading after the bell.

Reporting by Abhishek Manikandan in Bengaluru; Editing by shailesh Kuber

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