eBay’s revenue jumps 18% on a year over year basis in Q2

eBay Inc. (NASDAQ: EBAY) released its quarterly financial results after the bell on Tuesday that came in stronger than what the experts had forecast. The U.S. company hired Walmart’s executive, Jamie Iannone, as its new Chief Executive Officer earlier this year in April.

Shares of the company dropped roughly 3% in extended trading on Tuesday. At £42.03 per share, eBay is currently 50% up year to date in the stock market after recovering from a low of £20.31 per share in March when the impact of COVID-19 was at its peak. Learn more about how to choose winning stocks.

eBay’s Q2 financial results versus analysts’ estimates

According to FactSet, analysts had anticipated the company to print £2.16 billion in revenue in the second quarter. In terms of earnings per share (EPS), they had estimated 60.93 pence. In its report on Tuesday, eBay topped both estimates posting a higher £2.21 billion in revenue and 83 pence of adjusted earnings per share in Q2.

At £570.71 million, the American multinational e-commerce corporation said that its net income came in significantly higher than £310.04 million in the same quarter last year. After adjusting for several factors including stock-based compensation, eBay reported £593.85 million of net income in the recent quarter versus the year-ago figure of £454.26 million.

On a year over year basis, the San Jose-based company’s revenue was also reported 18% higher than £2.07 billion in the comparable quarter of last year. eBay expressed plans of selling its classified ads unit to Adevinta last week.

According to eBay, its customers in the United States spend 35% more while international spending noted a 22% growth in Q2. The company saw a 26% growth in gross merchandise volume to £20.90 billion in the recent quarter. It concluded the second quarter with 182 million active buyers after adding 8 million new in Q2. Analysts, however, expected eBay to end the quarter with 184 million active buyers instead.

eBay’s financial guidance for the full year

eBay also raised its financial outlook for the full year on Tuesday. It now expects its EPS to lie in the range of £2.68 to £2.77 on revenue of up to £8.29 billion. Analysts have forecast the e-commerce company to see £8.02 billion in revenue and £2.70 of earnings per share in fiscal 2020.

eBay performed fairly upbeat in the stock market last year with an annual gain of roughly 25%. At the time of writing, it is valued at £30.54 billion and has a price to earnings ratio of 9.35.