EBay shares up after reporting 53% profit rise

EBay last night posted a 53 per cent rise in quarterly profit and raised its financial targets to drive shares up nearly 15 per…

EBay last night posted a 53 per cent rise in quarterly profit and raised its financial targets to drive shares up nearly 15 per cent and allaying concerns about slowing growth at the company.

The company pointed to strong business in its key markets, the United States and Germany, and its online payment service, areas where competition is seen growing.

EBay, which has become a global trading platform for everything from kitschy collectibles and classic automobiles to farming equipment, also pointed to strong growth overseas. It is aggressively expanding in Europe and Asia, particularly in China.

Revenue in the United States rose 27 per cent to $423.6 million in the second quarter from a year ago - accelerating from 20 per cent in the first quarter - while revenue outside the US increased 51 per cent to $418.8 million.

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The San Jose, California-based company said second-quarter net income rose to $291.6 million, or 21 cents a share, from a year-earlier net profit of $190.4 million, or 14 cents a share.

Adjusted profit excluding some items was 22 cents per share, and revenue rose 40 per cent to $1.09 billion from $773.4 million.

EBay boosted its third-quarter revenue forecast to a range of $1.05 billion to $1.07 billion from $1.04 billion to $1.06 billion previously. It also raised its net earnings forecast for the third quarter to 18 cents a share, compared with a range of 16 cents to 17 cents previously.