As GameStop Corp. chairman and CEO Ryan Cohen was readying a proposal to acquire eBay, the marketplace delivered first-quarter numbers that improved across key metrics.
Cohen proposed for GameStop to acquire all common stock of eBay Inc. at $125 per share for an equity value of $55.5 billion.
Net income from eBay continuing operations in the quarter was $512 million, or $1.12 per diluted share, versus $501 million, or $1.05 per diluted share, in the year-earlier quarter, eBay reported. Adjusted for one-time events, net income was $760 million, or $1.66 per diluted share, versus $654 billion, or $1.37 per diluted share, in the year-prior period.
EBay topped a Zacks Investment Research analyst consensus estimate of $1.58 per adjusted diluted share and beat an earnings estimate by 2%.
Net revenue was $3.09 billion versus $2.59 billion in the year-before quarter, the company noted. Income from operations was $811 million versus $611 million in the year-previous period.
Gross merchandise volume was $22.2 billion, up 18% on an as-reported basis and up 14% on a foreign exchange neutral basis.
In the quarter, eBay did some acquiring of its own, announcing a definitive agreement to purchase Depop, a consumer-to-consumer fashion marketplace, from Etsy to deepen the company’s reach with younger, fashion-forward consumers.
The second quarter outlook, according to eBay, was for revenue of $2.97 billion to $3.03 billion and adjusted diluted earnings per share of $1.46 to $1.51.
“Our strong first quarter results, characterized by robust GMV and revenue growth, along with healthy earnings, reflect the powerful operating leverage inherent in our business,” said Peggy Alford, eBay CFO, in announcing the financial results. “We remain committed to disciplined execution of our strategic priorities while continuing to allocate capital thoughtfully to drive long-term value and significant returns for our shareholders.”
