EBay Jumps Most in Nine Months After Raising 2016 Earnings Goalby
Increase of 11% is second-biggest advance on S&P 500
Company sees sales of almost $9 billion, beating forecasts
EBay Inc. surged the most in nine months Thursday, hitting a record high after raising its revenue and profit forecast this year and beating analyst estimates for second-quarter earnings.
In results released Wednesday evening, EBay said full-year revenue would be almost $9 billion, up from previous forecasts and narrowly beating analysts’ previous estimates. Second-quarter revenue rose 6 percent. The figures showed progress a year after the company split from PayPal, which will report earnings later Thursday.
“Given that this is a top-line turnaround story, we view the revenue raise as encouraging,” Susquehanna analyst Shyam Patil said in a note.
EBay climbed as much as 11 percent to $30.03, marking the biggest intraday increase since October. The shares rose to $29.94 at 11:06 a.m. in New York and were the second-biggest gainer on the Standard & Poor’s 500 Index.
EBay’s positive earnings report renewed analyst confidence after Chief Executive Officer Devin Wenig restructured the company into a marketplace for difficult-to-find items, facing an expanding e-commerce market and competition from rivals like Amazon.com Inc.
“In a nutshell, the fruits of the labor in revamping and recalibrating the EBay experience are starting to pay off,” Monness Crespi Hardt & Co. analyst James Cakmak said in a note.