EBay Boosts Earnings View Due to Sale of More MercadoLibre Shares
November 03 2016 - 9:30PM
Dow Jones News
EBay Inc., which previously said it would see a significant gain
on its sale of MercadoLibre Inc. shares, increased its
fourth-quarter earnings guidance to reflect the sale of more
stock.
With the exercise of the overallotment option, eBay has exited
its stake in the Buenos Aires-based e-commerce technology. The
stock sale, already upsized, totaled more than $1.36 billion.
In its earnings report on Oct. 19, eBay said it would use the
proceeds "in a manner consistent with its capital allocation
policy."
EBay became a MercadoLibre shareholder in 2001 when MercadoLibre
bought the Brazilian unit of iBazar, which eBay had previously
acquired.
EBay now expects fourth-quarter earnings from continuing
operations of $1.15 to $1.25 a share, compared with its prior
outlook of $1.05 to $1.15.
The San Jose, Calif., company said last month that it expected
fourth-quarter revenue of $2.36 billion to $2.41 billion and
adjusted earnings from continuing operations of 52 cents to 54
cents, compared with analysts' expectations of $2.4 billion in
revenue and 54 cents of per-share earnings.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
November 03, 2016 21:15 ET (01:15 GMT)
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