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The internet auction company eBay reported first quarter earnings last week, beating the expectations of Wall Street analysts who believed the company would earn $.46 a share. For the quarter, eBay reported revenue of $2.5 billion, a 14 percent increase relative to the same quarter a year ago. As for earnings, eBay reported profits of $619 million, or $.47 a share, one cent above the analysts' expectations. Much of its growth was due to the continued popularity of PayPal, the online financial transaction service that allows people to send and receive money through the internet. PayPal is the most popular way in which to buy and sell goods through the eBay auction service. Indeed, PayPal has become so ubiquitous on the site that eBay bought the company back in 2002 for $1.5 billion.
The number of registered accounts on PayPal increased 16 percent in the first quarter compared to a year ago, totaling over 97 million users. Much of this growth came from international users, people who often face extra challenges when attempting to conduct financial transactions over the internet. As for its Marketplace business, gross merchandise volume increased 8 percent worldwide, a result in line with expectations. Although results in the Marketplace business were not as robust as with PayPal, the growth was still considered satisfactory. The company has made a renewed focus on concentrating growth in its mobile business, results that seem to be paying dividends. Company officials announced during the conference call that gross merchandise volume from its mobile unit should double to $4 billion over the course of the year. As for the second quarter, Wall Street analysts used the conference call as an opportunity to update its revenue and profit expectations. Specifically, revenues are expected to be $2.6 billion and profits are expected to be between $.45 and $.46 a share.
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