EBay's earnings beat expectations

EBay has posted earnings of $US83 million for the second quarter, and announced the sale of its online shopping site developer.

An eBay sign at eBay headquarters in San Jose, Calif.

Online retailer EBay has posted earnings of $US83 million for the second quarter. (AAP)

EBay has topped Wall Street expectations for its second quarter earnings as the online retailer prepares to spin off PayPal.

EBay also announced the sale of its Enterprise business, which develops online shopping sites for brick-and-mortar retailers, for $US925 million.

Clients include Sports Authority, PetSmart and Ikea.

Earlier this month one of its biggest clients, Toys R Us, said that it would move its ecommerce business in house next year.

But that didn't stop the sale to a group of private equity firms led by Permira and Sterling Partners, the company announced.

EBay Inc, based in San Jose, California, also reported quarterly net income of $US83 million.

Adjusted earnings, excluding a $US786 million charge related to the Enterprise sale, amounted to 76 cents per share, four cents better than analysts had projected, according to a survey by Zacks Investment Research.

The e-commerce company posted revenue of $US4.38 billion in the period.

Including revenue from its discontinued enterprise unit, however, revenue totaled $US 4.65 billion.

EBay said the stronger US dollar hurt its results.

Its shares are up more than 29 per cent over the past year.


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Source: AAP


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