Online retailer eBay last night reported better-than-expected quarterly revenue and raised its sales forecast for the year as efforts to revamp its online marketplace start to pay off.
EBay shares were up 8% after the bell on Wall Street last night after the company's board also authorised an additional $2.5 billion stock buyback programme.
The company, which spun off PayPal O last July, has tackled slowing growth by focusing on small business sellers, while offering a bigger selection of products.
Gross merchandise volume, or the total value of all goods sold on its sites, was up 4% at $20.9 billion in the second quarter ended June 30, helped by strength in its US business.
The number of active buyers rose 4% to 164 million.
The company's revenue also got a boost from robust sales at Stubhub, which won a six and a half year revenue-sharing deal to resell tickets for the New York Yankees last month.
Stubhub's revenue jumped 40% to $225m in the latest quarter.
EBay raised its full-year revenue forecast to a range of $8.85 billion to $8.95 billion, from $8.6 billion to $8.8 billion; and adjusted profit from continuing operations in the range of $1.85 to $1.90, from $1.82 to $1.87 per share.
For the third quarter, the company forecast revenue of $2.16 billion to $2.19 billion and adjusted profit from continuing operations of 42 to 44 cents per share.
Analysts on average expect profit of 44 cents per share and revenue of $2.14 billion, according to Thomson Reuters.
The company said its net income rose to $435m, or 38 cents per share, in the latest quarter from $83m, or 7 cents per share, a year earlier.
Excluding one-time items, eBay earned 43 cents per share, beating analysts' expectations by a cent.
Revenue rose 5.7% to $2.23 billion, ahead of analysts' average estimate of $2.17 billion.
