LONDON (Brand Republic) - Online auction site eBay beat analysts’ forecasts by 40% with its first quarter profits, and raised its estimates for the second and third quarters.
Profits for the quarter were $21m (£14.46m), or eight cents a share -– more than 10 times better than last year’s first-quarter profit of $1.8m (£1.25m). Revenues were $151.4m (£104.96m), beating analysts’ estimates of $149m (£103m), and 79% better than the same period last year.
The company, which is one of the few profitable dotcoms, increased its revenue forecast for the second quarter from $157m-$158m (£108.8m-£109m) to $163m-$165m (£113m-£114m).
For the third quarter, it raised its estimate by $5.75m (£3.99) to $166-$167m (£115m-115.77m).
eBay executives attributed the growth to an uplift in bargain shopping by consumers, and the introduction of its fixed-price Buy It Now service. Despite the encouraging performance, however, chief financial officer Rajiv Dutta was cautious: “We remain watchful for a slow-down in consumer spending that could affect our performance.”
Analysts commented that eBay appears to have avoided the fate of other technology companies such as Cisco, which have had to lay off staff in order to weather the current market downturn.
Shares were up $3.01 (£2.09) in after hours trading last night, to $53.00 (£36.74).
www.ebay.com