The FINANCIAL — EBay Inc. reported on July 16 that revenue grew 7% in the June quarter, its last that includes results from its PayPal division before the two businesses split, according to Nasdaq.
Shares of eBay rose 3.2% in premarket trading as adjusted earnings beat Wall Street expectations and the company also added $1 billion to its stock-buyback authorization.
The eBay-PayPal split is expected to happen July 17. EBay on Thursday gave yearly forecasts for the two business after the split. EBay expects revenue to grow 3% to 5% adjusted for currency impacts, with adjusted earnings per share falling in the range of $1.72 to $1.77.
For PayPal, it sees revenue growing 15% to 18% on a currency-neutral basis and EPS of $1.23 to $1.27.
The company also said it plans to sell its eBay Enterprise unit to a group led by private-equity firm Permira for $ 925 million, confirming a report by The Wall Street Journal from Wednesday night.
Due to the pending sale of Enterprise, the results of that segment are presented as discontinued in the latest quarter and eBay recorded an impairment of Enterprise goodwill of about $786 million.
Overall, the company posted earnings of $83 million, or seven cents a share, compared with a year-earlier profit of $676 million, or 53 cents a share. Excluding special items such as the impairment charge, per-share earnings were 76 cents, up from 70 cents.
Revenue rose to $4.38 billion from $4.1 billion.
Analysts had expected per-share earnings of 72 cents on revenue of $4.49 billion, according to Thomson Reuters.
In the second quarter, PayPal’s net total payment value grew 20% to $66 billion, with merchant services volume up 27%. Payment volume through eBay Marketplaces was $14.5 billion. Revenue grew to $2.26 billion from $1.95 billion a year earlier.
Revenue at eBay’s core marketplace was $2.12 billion, down from $2.18 billion a year earlier, though it would have improved 5% if adjusted for currency fluctuations.
EBay said its number of active buyers grew 6% in the quarter.
In a June filing, eBay had said it expected revenue from its marketplace division–which will comprise the new eBay after the spinoff of its PayPal payments unit–will remain flat or grow as much as 5% next year, not including the impact of foreign exchange fluctuations.
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