EBay sells Enterprise unit, tops profit expectations

They project GAAP earnings of between 89 cents and 95 cents per share and non-GAAP earnings of between $1.23 and $1.27 per share. Loss from discontinued operations net of income taxes was reported to be $599 million.

As eBay gets ready to split from PayPal, it’s narrowing its focus right on its marketplace.

The company also announced that it has sold its Enterprise business for $925 million.

eBay’s stock is holding up well this year despite some big name Chinese online retailers having experienced some considerable falls.

Back then, eBay’s resources allowed PayPal to invest in sophisticated fraud detection programs and hire lawyers to fend off federal regulators who they feared would control it like a bank.

The sale of eBay Enterprise was prompted by “increasingly divergent business opportunities” between the enterprise unit and the rest of eBay, a spokeswoman said by email. Schulman said PayPal is integrated with 67% of the top 100 mobile merchants, and has seen traction with the SUBWAY app, powered by PayPal-owned Paydiant. That represented about 7% of eBay’s$17.9 billion in sales. Thirteen analysts surveyed by Zacks expected $4.48 billion.

EBay said its number of active buyers grew 6% in the quarter.

EBay acquired GSI Commerce in 2011 for $2.4 billion, and was rebranded as eBay Enterprise two years later. When all was said and done, PayPal’s revenue increased to $2.3 billion, good for almost 53% of eBay’s current combined total.

EBay reiterated a June filing in which it said it expected revenue from its marketplace division to remain flat or grow as much as 5% next year, not including the impact of foreign exchange fluctuations.

eBay Enterprise accounted for seven per cent of all revenue in the first quarter this year.

The unit suffered a blow last week when Toys “R” Us Inc., one of its larger customers, said it would take its USA business in-house by mid-2016.

According to 12 recommendations detected by TipRanks.com, Kurnos has a 64% success rate recommending eBay Inc, with a +15.8% average return per rating.

The CEO of eBay, John Donahoe, stated: “We are very pleased with our overall Q2 performance”. PayPal revenue topped sales from the online marketplace unit for the second consecutive quarter.