eBay Inc. (NASDAQ:EBAY) raised its forecast for the full year after the online auction site reported better-than-expected quarterly earnings, helped by strong performance of its PayPal and marketplaces businesses.
The stock gained 4.18 percent to $37.37 in extended trading.
Non-GAAP earnings increased to $725 million or $0.55 per share for the first quarter from $619 million or $0.47 per share in the year-ago quarter.
Revenue jumped 29 percent to $3.28 billion, with PayPal revenue surging 32 percent.
Analysts, on average, polled by Thomson Reuters expected earnings of $0.52 per share on revenue of $3.15 billion.
PayPal reported 109.8 million active registered accounts in the quarter, up 12 percent from the same period of last year.
At eBay's marketplaces business, gross merchandise volume (GMV) excluding vehicles gained 12 percent to $16 billion.
Non-GAAP operating margin contracted to 26.9 percent from 29.4 percent, hit by the impact of acquisitions and business mix.
Looking ahead for the second quarter, eBay sees non-GAAP EPS between 53 cents and 55 cents on revenue in the range of $3.25 billion to $3.35 billion. Analysts expect EPS of 54 cents per share on revenue of $3.36 billion.
For the full year, the company now expects non-GAAP EPS in the range of $2.30 to $2.35 from prior expectations of $2.25 to $2.30. Revenue is now projected to be between $13.8 billion and $14.1 billion from $13.7 billion to $14.0 billion projected earlier. Analysts expect EPS of $2.30 per share on revenue of $13.85 billion.
The stock, which has been trading between $26.86 and $38.18 over the past year, ended Wednesday's regular trading at $35.87.