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Ebay Raises Q2 Outlook; Stock Up

eBay Inc. (EBAY) said that its business is performing significantly better than its prior expectations. The company raised its outlook for the second-quarter. It also expects that full year performance will likely be above the prior ranges.

In Thursday regular trade, EBAY is trading at $50.00, up $3.55 or 7.64 percent.

The company raised its second-quarter non-GAAP earnings per share outlook to a range of $1.02 - $1.06 from the prior estimation of $0.73 - $0.80. Analysts polled by Thomson Reuters expect the company to report earnings of $0.78 per share for the second-quarter. Analysts' estimates typically exclude special items.

The company also increased its second-quarter revenue guidance to a range of $2.75 billion - $2.80 billion from the prior outlook of $2.38 billion - $2.48 billion. Analysts expect revenues of $2.46 billion.

The company projects second-quarter GAAP earnings per share to be between $0.70 and $0.74.

The company now expects second-quarter volume growth rates to land between 23% and 26% as compared to the prior year period. Strength in global gross merchandise volume (GMV) seen in April has continued through May,the company said.

The company noted that about 6 million new and reactivated buyers were added in April and May.

The company said it is not updating full year guidance at this time, but it currently expects that full year performance will likely be above the prior ranges.

Previously, the company expected annual non-GAAP earnings per share from continuing operations in the range of $3.00 - $3.10, and net revenue between $9.56 billion and $9.76 billion, representing organic FX-neutral growth of 1% - 3%. Wall Street currently is looking for fiscal year 2020 earnings of $3.07 per share on annual revenues of $9.74 billion.

Meanwhile, the company said it is continuing its listing promotion through the end of July in the US with 50,000 additional free fixed price listings per month for store sellers and 200 additional free listings per month for non-store sellers.

The company extended seller performance protections, established at the onset of COVID-19, through July 19, 2020.

eBay announced a donation of over $1.3 million, split between the NAACP Legal Defense Fund and Equal Justice Initiative in an effort to take action against systemic racism and injustice.

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