EBay enjoys 15-month trading gain high

EBAY, owner of the second-most visited e-commerce site, had its biggest gain in 15 months in Nasdaq trading after forecasting fourth-quarter sales and earnings that exceeded analysts’ estimates.

Sales will be $2.39 billion (€1.7bn) to $2.49bn this quarter, EBay said when it reported third-quarter results.

Excluding stock-option costs and other expenses, profit will be 45 cents to 48 cents a share.

Analysts in a Bloomberg survey had projected revenue of $2.41bn and earnings of 44 cents.

Chief executive John Donahoe, halfway through a three-year campaign to revive growth, has cut listing fees to lure more sellers and taken steps to make EBay’s main Marketplaces commerce site easier to use. The company also is benefiting from more consumers making purchases online and using PayPal to handle payments.

“There is a lot of positivity here,” said Sandeep Aggarwal, an analyst at Caris & Co in San Francisco.

“This is clearly an indication that the EBay turnaround is becoming more compelling.”

The company’s board also approved a $2bn stock repurchase, following a $300 million buyback in the third quarter.

The company has $6.1bn in cash, with about $115m in the US, chief financial officer Bob Swan said on a conference call.