eBay (EBAY) Releases Earnings, Icahn Pushes to Spinoff PayPal
Shares of eBay Inc. (EBAY) were trading up +2.33 or +4.28 percent to $56.65 per share in pre-market trading on Thursday, after the company released its fiscal fourth quarter and full-year earnings results Wednesday afternoon. eBay stock closed up +0.26 or +0.48 percent to $54.41 in Wednesdayâ s regular trading session. In addition to the earnings announcement, activist investor Carl Icahn gave notice to eBay that he had nominated two of his employees to the companyâ s board of directors and proposed spinning off PayPal as a separate company.
Icahn and his associates already own almost one percent of eBay.
San Jose, California based eBay Inc. was founded in 1995 as a consumer to consumer online marketplace. The company has grown exponentially and is now a multi-billion dollar enterprise with operations in 30 countries worldwide. The companyâ s PayPal division is responsible for more than half of the companyâ s revenue. eBay reported revenue for the fourth quarter had increased +13 percent to $4.5 billion, versus a year ago. Net income came to $850 million or $0.65 per diluted share, with non-GAAP net income of $1.1 billion or $0.81 per diluted share. For the full year of 2013, revenue grew by +14 percent with non-GAAP earnings per share increasing +15 percent, while GAAP earnings per share increased +9 percent. The PayPal divisionâ s revenue increased by +19 percent for both the year and the fourth quarter, adding 5.2 million new accounts in the fourth quarter. The PayPal revenue was a large part of the $1.84B in Payments revenue reported. Payment volume increased +25 percent for the year, to $52B due in part to participation of non-eBay merchants and Braintree. The Marketplace accounted for a +12 percent increase in revenue, to $2.23B. eBay Inc. CEO and President John Donahoe stated in a press release, â
Published on Jan 23, 2014
By Jay Hawk