eBay Inc Hits New Highs, Nokia Corporation Hits New Lows After Earnings (NASDAQ:EBAY, NYSE:NOK)
eBay Inc (NASDAQ:EBAY) shares are hitting a new 52-week high in the pre-market session as the company reported solid first-quarter profit boosted by higher revenue from its PayPal business and brisk sales at its e-commerce websites.
The company posted net income $570 million, or 44 cents a share, up 20% from a year ago profit of $476 million, or 36 cents a share. On an adjusted basis, the company would have earned 55 cents a share, ahead of analysts’ estimates of 52 cents a share.
Revenue during the quarter grew 29% to $3.28 billion from $2.55 billion a year ago, topping analysts’ estimates of $3.15 billion.
Revenue at PayPal surged 32% year-over-year to $1.31 billion, while the number of active accounts jumped 12% to 109.8 million.
For the second quarter, eBay expects to earn 53 cents to 55 cents a share and revenue of $3.25 billion to $3.35 billion, compared to analysts’ estimates of 55 cents and slightly higher revenue of $3.42 billion.
Shares of EBAY are up 9.31% to $39.21 in the pre-market session.
Nokia Corporation (ADR)(NYSE:NOK) continued to hit a decade low in the pre-market as the struggling cellphone maker posted a sharp loss in its first quarter on increased competition.
The company posted a loss of €929 million ($1.2 billion) , reversing a year ago profit of €344 million a year earlier, while revenue slumped 30% to €7.4 billion from €10.4 billion in 2011.
Net sales of devices slumped 40% to €4.2 billion, with smartphone sales dropping by over 50% to €1.7 billion.
The company said that it expects operating margins in the second quarter would be “similar to or below the first quarter 2012 level of negative 3 percent,” and that it would speed up a cost cutting goal of €1 billion by 2013.
Sales of smartphones dropped to 12 million in the first quarter, from 24 million a year earlier, while volume sales of cellphones fell to 83 million from 108 million in 2011.