On-line auctioneer eBay Inc. clicked on sharply higher fourth-quarter profit Thursday, driven by a 57 per cent rise in sales.
Results topped the Street's expectations and the company delivered even more good news by raising its 2004 sales and profit targets.
After the close of stock markets, the San Jose, Calif.-based Internet firm said it earned $142.5-million (U.S.) or 14 cents a share, up 64 per cent from a year-earlier $87-million or 21 cents a share. Excluding some items, eBay said its profit was a record $157-million or 24 cents a share.
Fourth-quarter sales jumped 57 per cent to $648-million from $413.9-million.
Analysts had been expecting per share profit of 22 cents on sales of $623.6-million. The company itself had forecast net sales of $590-million and a pro forma profit of 21 cents a share.
Investors liked what they saw. Shares of eBay rose 4.4 per cent in extended trading to 67.04 cents a share after closing Wednesday's session down 2 per cent or $1.32 at $64.38. The stock has soared nearly 30 per cent since mid-November and is trading at about 88 times estimated 2003 earnings.
The company had 94.9 million registered users at the end of the fourth quarter, up 54 per cent from a year ago. Of those accounts 41.2 million used eBay in the past 12 months, up 49 per cent from a year ago.
Listings rose to 292 million in the quarter, up 49 per cent from last year.
eBay forecast that 2004 sales of $3-billion, per share profit of 99 cents, and earnings, before items, as high as $1.04 a share.
The company had previously said sales this year would come in at $2.9-billion and pro forma profit at 98 cents. Analysts were expecting eBay would earn $1.04 in 2004 on sales of $2.9-billion.
In the first-quarter, eBay said it expects sales of $700-million, profit of 24 cents, and pro forma profit of 25 cents.
"The business is delivering tremendous results and our long-term prospects couldn't be brighter,” said an upbeat Meg Whitman, eBay's chief executive officer.
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