News Column

EBAY results top Wall Street targets but outlook disappoints

April 30, 2014

CITY A.M. REPORTER



E-COMMERCE giant eBay forecast a smaller-than-expected second quarter profit last night.


Shares in the company fell three per cent in after-hours trading despite higher-than-expected profit.


During the quarter, eBay took a $3bn (£1.8bn) non-cash tax charge to access $9bn in foreign earnings. The move will boost available US cash by about $6bn, up from $4.4bn of cash and cash equivalents at the end of March.


Some investors were expecting an even larger first-quarter beat after activist investor Carl Icahn ended his campaign to force eBay to spin out PayPal earlier this month, Wedbush Securities analyst Gil Luria said.


EBAY's revenue rose a slightly better-than-expected 14 per cent to $4.26bn. PayPal, eBay's fastestgrowing division, posted a nearly one-fifth increase in revenue.


"Investors assumed that''s because the results were very good and Mr. Icahn was content with what he was seeing," Luria said.


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Source: City A.M. (UK)


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