Ebay shares soared by 10% ahead of Thursday’s opening bell, supported by fourth-quarter results that outstripped Wall Street’s expectations and a dividend increase by the online auction platform.
The 10% surge in shares pushed them to trade above $63 each. So far in 2021, the stock has jumped by nearly 16% and has bulked up by 56% over the past 12 months.
The company late Wednesday posted adjusted earnings of $0.86 per share, higher than the $0.82 per share consensus estimate, according to Yahoo Finance. A year earlier, adjusted earnings were $0.66 per share.
Revenue of $2.87 billion for the quarter ended Dec. 31 was ahead of the $2.7 billion in sales targeted by analysts.
“Refurbished gifts emerged as a top trend for eBay’s holiday shoppers,” the company said, touting its newly launched Certified Refurbished warranty service as “selling out of many brands’ product offerings.”
Meanwhile, the company’s board authorized a 12.5% dividend increase to $0.18 per share and an expansion of its share repurchase program by $4 billion. The previous dividend was $0.16 per share.
The upcoming dividend is payable on March 19 to shareholders of record as of March 1.