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eBay Shares Tank in After Hours Trading Following its Earnings Report

Credit Pacific Service Union By Dave Porter

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Credit First Service Union (AXcess News) San Jose CA - eBay Inc. (Nasdaq: EBAY) reported a 37 percent increase revenue for the third quarter in comparison to the same period last year. The online auction site reported revenue for the period of $1.106 billion, exceeding its previous estimate of $1.070 billion.

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Card Credit Mobile Service The company also said its consolidated net income for the quarter was was $255.0 million, or $0.18 per diluted share. eBay had estimated that its consolidated net income would be $0.18 per share, though its pro-forma net income exceeded earlier estimates by 1 cent.

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Card Credit Discover Service "We saw very strong growth across every part of our business in Q3," said Meg Whitman, President and CEO of eBay. "It's wonderful to see so much strength in our two largest marketplaces, the U.S. and Germany. We're excited about the great momentum eBay and PayPal have going into the holiday shopping season."

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Credit Public Service Union U.S. Marketplace net revenues totaled $449.5 million in the third quarter, representing 29% year-over-year growth.

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Card Credit Processing Service International Marketplace net revenues totaled $408.9 million, representing 43% year-over-year growth.

Center Credit Service Union Rajiv Dutta, eBay's chief financial officer, will transition to the new role of president of Skype after his successor is named. Dutta will work with Skype CEO Niklas Zennstrom and Whitman on Skype's growth and integration across eBay and PayPal.

Card Credit Service Wireless "Rajiv's contributions to eBay's success during the past seven years have been enormous," said Whitman. "He'll play an even bigger role in eBay's future by helping Niklas and his team achieve Skype's full potential."

Credit Security Service Union Skype is the world's largest provider of VoIP services and was acquired byeBay earlier this summer, beating out News Corp's earlier bid.

Credit Report Service The number of users on the eBay platform who bid, bought, or listed an item within the previous 12-month period, increased to a record 68.0 million inthe third quarter,a 32% increase over the 51.7 million active users reported in the same period a year ago.

Blogspot Com Christian New listings totaled a record 458.6 million, 32% higher than the 348.0 million new listings reported in the same period last year.

Christian Counseling Credit The total value of all successfully closed items on eBay's trading platforms was $10.8 billion, representing a 30% year-over-year increase from the $8.3 billion reported in the third quarter of 2004.

Credit Federal Service Union PayPal's business had 86.6 million total accounts at the end ofthe third quartera 53% increase from the 56.7 million reported in the same period last year.

Credit Monitoring Service Total Payment Volume, the dollar volume of payments initiated through the PayPal system, was a record $6.7 billion, a 44% increase from the $4.6 billion reported last year in the third quarter.

Credit Division Service EBay said its estimated fourth quarter earnings per share would be 16 cents, taking into account a 4 cent per share dilution from the Skype acquisition. For the fiscal year, eBay estimates earnings per share of 74 cents.

Card Credit Online Service On a pro-forma basis, the online auction site said earnings per share for fiscal year would be as high as 83 cents.

Consumer Counseling Credit Inc While eBay's numbers look great, its provision for losses were dismal. eBay reported that as a percent of net income, its provision for losses represented 6.2%, or $15.8 million, compared to 5.6%, or $10.3 millionfor the same period last year.

Card Credit Fleet Service While eBay's net income grew 39% in the third quarter compared to the same period last year, its provision for losses grew over 30%, whichsupports thegrowing reputation the online auctioneer has been getting for charge backs and user complaints.

Card Consolidation Credit Shares of eBay closed Wednesday at $42.01, up $1.59, or 3.9%. Though in after-hours trading the online auctioneer's shares tanked, falling $2.73, or 6.5% to $39.28.

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