eBay reported second quarter results after the bell on Wednesday and saw its stock rise over 5% in initial after-hours trading. The company beat expectations, posting earnings at an adjusted 43 cents per share, when analysts were forecasting 42 cents.
The company also brought in $2.23 billion in revenue, compared to the $2.17 billion expected by Wall Street.
Investors were also pleased to see the company raise its full year guidance. eBay expects between $8.85 billion and $8.95 billion in revenue for 2016.
“We are now one year into executing our strategy to provide the best choice, the most relevance and the most powerful selling platform, and there are signs of momentum in our business,” said CEO Devin Wenig, in a statement. The company split from PayPal a year ago.
eBay also repurchased $500 million of its common stock in the quarter. The board approved an additional $2.5 billion stock repurchase authorization, with no expiration.
One thing that eBay has been focused on lately is what they call their “structured data initiative.” They have been focused on “efforts to improve the search experience and better categorize products,” said James Cakmak, analyst at Monness Crespi Hardt. He said that investors have been curious to see if this strategy will finally improve sales.
eBay has been shifting their focus to its fixed price business, since their auctions business is in decline. This means the company has been competing more directly with Amazon, attracting more brands to sell products on their marketplace site.
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Another area of focus is StubHub, the concert and sports ticket business, which has seen significant growth. This division brought in $225 million in revenue, up 40% year-over-year. The recent acquisition of Ticketbis is expected to help them expand into international regions.
Last quarter, the company beat earnings expectations. Shares are up 9% in the past three months.
Shares closed Wednesday at $26.99. The company has a market cap of $31 billion.