Pandemic-driven surge in online shopping helps eBay beat profit and sales estimates

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E-commerce firm eBay Inc said on Wednesday it would emerge “stronger” from the COVID-19 crisis after a pandemic-driven surge in online shopping helped the company beat estimates for sales and profit in the holiday quarter.

Shares of the company were up nearly 10% in extended trade.

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 also projected first-quarter revenue in the range of $2.94 billion to $2.99 billion, above estimates of $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.

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.

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