eBay this afternoon reported Q4 revenue and profit that topped analysts’ expectations, driven by a 21% surge in goods and services transacted, and forecast results this quarter quite a bit higher, and said it added to its stock buybacks pool by another $4 billion.
The company also raised its quarterly dividend by 13%, to 18 cents per share per quarter.
The report sent the shares up 10% to $63.96 in late trading.
Said CEO Jamie Iannone, “I am proud eBay was able to be there for our buyers, sellers and community, especially in the face of a global pandemic.”
Iannone said the company had “finished the year with strong financial results, but what inspires me most is the support we’ve been able to extend to small businesses — providing them with tools, resources and access to millions of buyers globally.”
,Iannone pledged the company wound “continue to invest in product and technology in order to deliver the best marketplace in the world for our customers.”
eBay said it had bought back $419 million worth of its stock in the fourth quarter, or eight million shares, for a year total of $5.1 billion, leaving it with a remaining repurchase authorization of $2 billion.
Revenue in the three months ended in December rose to $2.87 billion, yielding EPS of 86 cents.
Analysts had been modeling $2.71 billion in revenue and 83 cents EPS.
Also: eBay beats Q3 targets, year over year revenue climbs
eBay said its gross merchandise volume, or GMV, a measure of the total value of goods and services transacted on its platform, rose 21%, year over year, to $26.6 billion. The number of annual active buyers increased by 7% across its platforms, for a total of 185 million.
For the current quarter, the company sees revenue in a range of $2.94 billion to $2.99 billion, and EPS of $1.03 to $1.08. That compares to consensus for $2.54 billion and 86 cents per share.
eBay has been conducting a number of divestitures, including the sale of its classifieds business to Norway-based Adevinta last year for $9.4 billion. The company said repeated the statement this afternoon that it’s on track to complete the transfer of the business by Q1 2021.
