EBay sells Enterprise unit, tops profit expectations

EBay sold its Enterprise business for $925 million and topped Wall Street expectations for its second-quarter earnings as the online retailer prepares to spin off PayPal.

Shares rose more than 4 percent in morning trading Thursday.

EBay had said in January that it might sell Enterprise, which develops online shopping sites for brick-and-mortar retailers. Clients include Sports Authority, PetSmart and Ikea. Earlier this month one of its biggest clients, Toys R Us, said that it would move its ecommerce business in house next year.

But that didn't stop the sale to a group of private equity firms led by Permira and Sterling Partners, the company announced Thursday.

EBay Inc., based in San Jose, California, also reported quarterly net income of $83 million, or 7 cents per share. Adjusted earnings, excluding a $786 million charge related to the Enterprise sale, amounted to 76 cents per share. That was 4 cents better than analysts had projected, according to a survey by Zacks Investment Research.

The e-commerce company posted revenue of $4.38 billion in the period. Including revenue from its discontinued enterprise unit, however, revenue totaled $4.65 billion. Thirteen analysts surveyed by Zacks expected $4.48 billion. EBay said the stronger dollar hurt its results.

EBay expects full-year earnings in the range of $1.72 to $1.77 per share.

Shares rose $2.15, or 3.4 percent, to close at $65.59 on Thursday. Its shares are up more than 29 percent over the past year.


Explore further

EBay 1Q revenue grows but falls below estimates

© 2015 The Associated Press. All rights reserved.

Citation: EBay sells Enterprise unit, tops profit expectations (2015, July 16) retrieved 25 August 2019 from https://phys.org/news/2015-07-ebay-tops-2q-profit.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.
8 shares

Feedback to editors

User comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more