eBay's Q1 earnings climb 20%

Company reports 23% growth in PayPal revenue

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Online auction giant eBay (NASDAQ: EBAY) on Wednesday reported a 20 percent increase in first-quarter net income, barely topping Wall Street estimates.

Shares of eBay climbed as high as 4 percent to 35.39 in extended trading after closing Wednesday's regular session at 34.03, itself a 2.9 percent gain.

eBay's net income in the quarter ended March 31 was $476 million, or 36 cents a share, up from $398 million, or 30 cents a share, in the year-ago quarter. Non-GAAP earnings were $619 million, or 47 cents a share.

The company reported Q1 revenue of $2.55 billion, up 16 percent from last year's $2.20 billion.

Consensus estimates called for eBay non-GAAP earnings in Q1 of 46 cents a share on revenue of $2.48 billion.

eBay reported that revenue from its auction Marketplace rose 12 percent to $1.55 billion from $1.39 billion, while online payment service PayPal saw revenue climb 23 percent to $992 million from $809 million a year ago.

Operating margin remained at 22.2 percent.

In a statement accompanying the earnings release, eBay CEO John Donahoe said, "The year is off to a strong start."

For the second quarter, eBay forecasts earnings of 45 to 46 cents a share, in line with Wall Street estimates, on revenue of $2.55 billion to $2.65 billion.

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