eBay: shares up 5% after results
(CercleFinance.com) - eBay posted better-than-expected quarterly results late on Tuesday, which sent its shares up more than 5% today on the Nasdaq.
First-quarter net profit was 608 million dollars, or 67 cents per share, compared with 548 million dollars, or 53 cents per share, a year earlier. Revenue rose 2% to 2.64 billion dollars.
The company also gave second-quarter forecasts which exceeded analysts' estimates.
For the current quarter, eBay expects revenue between 2.64 billion dollars and 2.69 billion dollars, slightly above the consensus.
According to Susquehanna analyst Shyam Patil - who keeps a "positive" rating on the stock with a target price of 43 dollars - the company is "moving in the right direction."
"eBay for the first time provided segment-level margin disclosures broken out by core marketplaces, classifieds, and StubHub," he noted.
"We continue to believe value could be unlocked by breaking up the three segments," the analyst added.
Patil's base-case indeed argues for 43 dollars, with 12 dollars coming from classifieds, four dollars from StubHub, and 27 dollars for core businesses.
The share is currently up 5% at 38.5 dollars on the Nasdaq.
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