eBay Gains Q2 Sales Momentum

The second quarter was generous to eBay both in terms of sales and merchandise moved, not to mention profits.

Net income from continuing operations was $740 million, or $1.04 per diluted share, versus $400 million, or 46 cents per diluted share, in the quarter a year previous. Adjusted for one-time charges, net income from continuing operations was $770 million, or $1.08 per diluted share, versus $576 million, or 66 cents per diluted share, in the year-past period.

A Zacks Investment Research analyst consensus second quarter estimate called for adjusted diluted earnings per share of $1.05.

Gross merchandise volume gained 26% to $27.1 billion on an as-reported basis and advanced 29% on a foriegn-exchange neutral basis, the company reported.

Net revenues were $2.87 billion as compared to $2.42 billion in the quarter a year earlier. Income from operations was $821 million versus $558 million in the year-before period.

“Our team’s focus on supporting small businesses and communities during a period of heightened need allowed us to re-engage our existing buyers and sellers while introducing approximately eight million new customers to our platform during the quarter,” said Jamie Iannone, eBay CEO. “This contributed to a very strong second quarter, ahead of expectations. Recently, we’ve also accelerated the rollout of managed payments and signed an agreement to transfer our classifieds business to Adevinta, bringing together two highly complementary businesses to create the world’s largest online classifieds group. Our purpose has always been to empower people and create economic opportunity for all. As we look to the future, our vision is clear: We will build on our powerful strengths to become the best global marketplace for buyers and sellers through a technology-led reimagination. We will accomplish this vision through three key priorities: build compelling next-gen experiences for our enthusiasts, become the partner of choice for sellers and cultivate life-long trusted buyer relationships.”