eBay Exceeds Estimates, Raises Outlook

The bulls on eBay (EBAY) had it right.

Expectations on the company’s results have been ratcheting up into this afternoon’s report, and it turns out, for good reason. For Q1, eBay reported revenue of $2.19 billion and pro forma EPS of 42 cents a share; the Street had expected $2.08 billion and 39 cents.

For Q2, eBay sees revenue of $2.1 billion to $2.15 billion, with non-GAAP EPS of 39-41 cents; the Street consensus has been $2.11 billion and 40 cents.

For all of 2008, the company forecasts revenue of $8.7 billion to $9 billion, with non-GAAP EPS of $1.70 to $1.75, above the current consensus of $8.79 billion and $1.68.

In a statement, eBay CEO John Donahoe said the results “reflect the strength provided by our diverse portfolio of businesses.”

The company’s Marketplaces unit grew revenue 19% year over year to $1.48 billion, but down 1% sequentially; that is hardly surprising, given that Q4 is typically the company’s strongest due to the holiday shopping season. Non-U.S. revenue was 55% of the total in Q1. Gross merchandise volume in the quarter was $16.04 billion, up 12% year over year, but off 1% sequentially from the seasonally strong fourth quarter.

PayPal revenue was $582 million, up 32% year-over-year, and up 3% sequentially. Global active accounts for the payment services totals 60.2 million, up 17% year-over-year.

Skype revenue totaled $126 million, up 61% year over year, and 9% sequentially. The service added 33 million users, increasing the total to 309 million.

eBay’s cash position at quarter end was $4.11 billion, down from $5.04 billion one quarter earlier, reflecting the repurchase of about 37 million shares in the quarter for about $1 billion. (That would suggest an average price of about $27 a share.)

U.S. revenues were up 16% year over year, but off 1% sequentially; international revenues were up 32% year over year, and up 2% from Q4.

Some additional Marketplaces metrics: Active users inched up to 83.9 million from 83.2 million one quarter earlier. New listings stood at 647.4 million, up 10% year over year and 2% sequentially. The number of eBay stores stands at 547,000, off 13% from a year ago, but up 3% sequentially.

Towards the end of today’s regular session, eBay was up 53 cents, or 1.7%, to $32.11; the stock had rallied 25% since March 19 on rising expectations for the quarter.