EBay announced earnings after the bell Wednesday, reporting it swung to a Q3 loss because of a previously-announced charge related to its purchase of Skype. The company reported a net loss of $935.6 million ($-0.69/share), versus a profit of $280.9 million ($0.20/share) last year. Revenues jumped 30% to $1.89 billion. EBay announced earlier this month it would take a $1.39 billion writedown associated with its 2005 purchase of voice-over-internet provider Skype (full story), saying Skype failed to live up to the expectations of eBay's management. Not including the writedown, earnings would have been $0.41/share. Analysts forecasted earnings, excluding the charge, of $0.33/share on revenues of $1.83 billion. PayPal net revenue was a record $470 million, a y/y growth rate of 35%. Quarterly listings of 556 million were just ahead of analyst estimates of 545 million; revenue per listing of $2.28 (up 31%) beat estimates of $2.23. "Monetization remains a major upside driver," Citigroup analyst Mark Mahaney said. "Results were driven by a combination of somewhat stronger performance in our big markets, as well as newer, faster growing businesses," CEO Meg Whitman said (full earnings call transcript later today). EBay sees full-year earnings for 2007, excluding the Skype charge, of $1.47-$1.49/share, and revenue of $7.6-7.65 billion, well ahead of analysts' range of $1.35-$1.41/share on revenue of $7.495 billion. Share of the online auction site were up 5.2% before the announcement, and at last check were trading up another 7.3% to $43.55.
Commentary: MySpace Adds Skype to Its Instant Messenger • Skype: Overvalued or Not?
Stocks to watch: EBAY.Competitors: GOOG, AMZN. ETFs: HHH, FDN
Earnings call transcript: eBay Q2 2007
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