I love earnings season. Every 3 months we get a sense for which companies are thriving in the market (Motorola) and which are hurting in the market (Nokia). After the closing bell today, eBay announced their financial results for the last 3 months, and they were absolutely stellar.
With earnings of $200 Million on sales of $756 Million, eBay has shown a great ability to grow in any economic condition. Most importantly, eBay is seeing growth in the sector necessary to justify the lofty valuation wall street has given it.... their international business.
International revenue grew 87 percent to $257 Million... representing a healthy 34 percent of revenue. The U.S. business grew at a healthy 39 percent.
So what does this mean for eBay going forward? Well the company expects sales for the year to hit $3.15 billion which will result in earnings of around $1.06 per share. Strategically, expect the firm to really continue focusing on the international part of their business... especially China.
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