EBay Inc.’s first-quarter results beat growth expectations in its top categories, namely sneakers and luxury watches, the company said Wednesday. Increased sales of those items, in addition to business cards, helped drive a 42% increase in revenue year-over-year.
“We generated tremendous volume and profits, with the highest revenue growth since 2005,” said Jamie Iannone, the company’s chief executive, in a statement. But eBay shares EBAY, + 1.00% fell more than 5.6% after hours, after a 1% rise in the regular session to $ 62.32, because the company forecast earnings below expectations. of the analysts. The online marketplace company reported first-quarter net income of $ 641 million, or 92 cents per share, compared to $ 3.41 billion, or $ 4.51 per share, in the same period last year. Adjusted earnings were $ 1.09 per share, adjusted for share-based compensation and other costs. Revenue increased to $ 3 billion from $ 2.13 billion in the prior year quarter. Analysts surveyed by FactSet had forecast earnings of $ 1.07 per share on revenue of $ 2.97 billion. EBay’s gross merchandise volume increased 29% to $ 27.5 billion. Analysts were expecting $ 26.31 billion. The San Jose, California-based company said its annual active buyers increased 7% to 187 million worldwide, and the company recorded an additional 2 million buyers in the first quarter from the previous quarter. EBay expects second-quarter earnings of 67 cents a share to 72 cents a share on revenue of $ 2.98 billion to $ 3.03 billion, while analysts had forecast $ 1 a share on revenue of $ 2.93. billion. EBay shares are up nearly 25% so far this year and are up more than 60% in the past 52 weeks.