eBay Pops 4% After Reporting Q1 Revenue Of $4.45B And Better-Than-Expected $0.77 In Per-Share Profit

Following the cessation of regular trading, eBay reported its first-quarter financial performance, including revenue of $4.45 billion and earnings per share of $0.77 using adjusted metrics. The street had expected a per-share profit of $0.70 on revenue of $4.42 billion.

Up a fraction in a down market during regular trading, eBay is up just under 5 percent following its earnings beat.

While eBay earned $0.77 per share discounting certain cost, using normal accounting methods (GAAP), the company earned a slimmer $0.51 per share. The company’s GAAP net income of $626 million in the quarter was similarly smaller than its adjusted income of $943 million.

The company earned more in transaction revenue from PayPal than its formerly core marketplace service during the three month interval. PayPal, which saw its net total payment volume rise 18 percent to $61 billion, generated $1.94 billion in transaction revenue for eBay. Adjusting for other incomes, eBay’s market and PayPal are on something akin to revenue parity. eBay and its PayPal subsidiary intend to split into two public companies.

PayPal picked up 3.6 million new “active accounts” in the quarter, up 11 percent to a total of 165 million. In contrast, eBay’s Marktetplaces segment saw its gross merchandise volume (GMV) fall 2 percent year-over-year. The company did note in its release that forex headwinds were at play. Holding currency constant, Marketplaces saw its global GMV rise 5 percent. Both segments appear healthy, in other words. It’s also worth noting that eBay indicated that currency woes harmed PayPal’s growth figures, as well.

eBay ended the quarter with an impressive $14.1 billion in cash and equivalents.

For the current quarter, eBay expects net revenues to total $4.4 billion to $4.5 billion. Adjusted profit should land between $0.71 to $0.73. GAAP profit for the payments giant will endure a $130 to $150 million charge in the quarter, lowering its standard per-share profit to $0.44 to $0.49 in the period.

eBay turned in a strong quarter, and investors seem quite content with its performance. Whenever the firm does hit go on mitosis, its house should still be in high repair.