E-commerce firm eBay Inc on Wednesday topped Wall Street expectations for the holiday quarter and forecast upbeat current-quarter sales, helped by a surge in online shopping during the COVID-19 pandemic.
Shares of the company jumped over 9% to $63.46 in extended trade on the news.
The global health crisis has forced millions of Americans to stay indoors, leading to a jump in online orders for e-commerce companies including eBay, Amazon.com Inc and Walmart Inc’s online business.
Ebay said it expects first-quarter revenue in the range of $2.94 billion to $2.99 billion, while analysts were expecting $2.53 billion, according to IBES data from Refinitiv.
The company also expanded share repurchase authorization by an additional $4 billion.
Annual active buyers grew by 7%, to a total of 185 million global active buyers, while refurbished gifts emerged as a top trend for the holiday shoppers, the company said.
The e-commerce firm had 183 million annual active buyers in the third quarter.
Revenue in the fourth quarter ended Dec. 31 rose to $2.87 billion from $2.24 billion, beating analysts’ average estimate of $2.70 billion.
Excluding items, eBay earned 86 cents per share, above estimates of 83 cents per share.