EBay boosts share buyback plan, tips strong first-quarter profit

February 14, 2020 10:33
The bright outlook reflects the benefit of share buybacks and investment timing, eBay said. Photo: Reuters

EBay Inc. added US$3 billion to its 2020 share buyback plan and forecast current-quarter profit above analysts’ expectations after closing the sale of its StubHub ticketing unit, Reuters reports.

The company is expanding its buyback plans to US$4.5 billion.

It expects to post first-quarter adjusted profit of between 72 cents and 75 cents, while analysts are expecting 72 cents, according to Refinitiv data.

The outlook reflects the benefit of share buybacks and investment timing, offset by the impact of the StubHub sale, the company said on Thursday.

In November 2019, eBay agreed to sell StubHub to Viagogo Ltd. for US$4.05 billion nearly a year after the e-commerce major came under pressure from activist investors to hive off some of its businesses.

For the full year 2020, eBay expects to post a profit in the range of US$3.00 to US$3.10 per share, the midpoint of which is above estimates.

The company's shares rose 2.4 percent in trading after the bell.

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