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eBay reports higher profit

Benefiting from a weak dollar, online auction company eBay Inc beat Wall Street’s expectations on Wednesday, reporting a 22 percent hike in first-quarter profit and raising its outlook for the rest of the year.

Ebay reported net income of US$460 million, or US$0.34 per share, on revenue of US$2.19 billion in the quarter that ended March 31. In the year-ago quarter, eBay earned US$377 million, or US$0.27 per share, on revenue of US$1.77 billion.

Excluding one-time items, eBay’s net income was US$562 million, or US$0.42 per share, compared to US$460 million, or US$0.33 per share, in the first quarter of last year. On that basis, analysts polled by Thomson Financial expected, on average, earnings of US$0.39 per share on revenue of US$2.08 billion.

More than half of eBay’s business — including its core online auction, fixed-price and store listings, PayPal, Skype and classifieds — takes place overseas. Sales in those stronger foreign currencies translate to more dollars for eBay.

EBay raised its outlook for this year, saying it now expects revenues between US$8.7 billion to US$9 billion with earnings per share between US$1.35 to US$1.40. Excluding special items, it expects earnings per share between US$1.70 to US$1.75.

“This was a very strong financial quarter for the company,” eBay chief executive John Donahoe said in a company statement. “The results reflect the strength provided by our diverse portfolio of businesses.”

The company raised its outlook for this quarter, for revenue between US$2.1 billion and US$2.15 billion, with earnings per share between US$0.30 and US$0.32.
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