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eBay beats Street with Q1 results


San Jose, Calif. – eBay Inc. topped Wall Street expectations for both profit and revenue in the first quarter of fiscal 2015. Growth in transactions and efforts to control expenses helped produce net income of $626 million, compared to a net loss of $2.33 billion the same quarter a year earlier.

Net revenue totaled $4.45 billion, up 4% from $4.26 billion. Revenue growth in both the eBay and PayPal units was negatively impacted by foreign currency translation. In the PayPal division, revenue rose 14% to $2.11 billion from $1.84 billion. In the Marketplaces division, revenue dropped 4% to $2.07 billion from $2.15 billion. In the Enterprise division, revenue climbed 7% to $288 million from $269 million.

eBay expects a smooth separation of its PayPal division into separate, publicly traded companies in third quarter 2015.

“We had a strong first quarter, with eBay and PayPal off to a good start for the full year,” said eBay president and CEO John Donahoe. “I feel very good about the performance of our teams at eBay and PayPal. Each business is executing well with greater focus and operating discipline as we prepare to separate eBay and PayPal into independent publicly traded companies.”

Looking ahead, eBay expects net revenues in the range of $4.4 billion to $4.5 billion in the second quarter of fiscal 2015, and in the range of $18.35 billion - $18.85 billion for the full fiscal year. eBay also expects earnings per diluted share in the range of $0.44 - $0.49 for the second quarter and $2.17 - $2.32 for the full year.

GAAP earnings for the quarter include an estimate of separation and restructuring costs of $130 million - $150 million, and for the year include an estimate of separation and restructuring costs of $350 million - $400 million.

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