Higher expenses weigh on eBay 2nd-qtr profit

Associated Press

NEW YORK (AP) — EBay's revenue increased in the second quarter as its PayPal business and namesake online marketplace continued to grow. But its net income fell amid higher expenses.

Shares of the e-commerce bellwether declined nearly 6 percent, to $54.25, in after-hours trading Wednesday.

EBay Inc. said it earned $640 million, or 49 cents per share, in the April-June period. That's down from $692 million, or 53 cents per share, in the same months a year earlier.

Adjusted to exclude one-time items, per-share earnings rose to 63 cents from 56 cents and matched Wall Street's expectations.

Revenue grew 14 percent, to $3.88 billion from $3.4 billion. Analysts polled by FactSet were expecting $3.89 billion.

The midpoint of San Jose, Calif.-based eBay's earnings outlook for the year is below analysts' average estimate.