EBay’s first-quarter net income rose 20 percent due to higher revenue from its PayPal business and brisk sales at its e-commerce websites. The results beat Wall Street’s expectations.
EBay Inc. said Wednesday that it earned $570 million, or 44 cents per share, in the January-March period. That’s up from $476 million, or 36 cents per share, a year ago. Adjusted earnings of 55 cents per share beat Wall Street’s estimates by 3 cents.
Revenue rose 29 percent to $3.28 billion from $2.55 billion.
Analysts, on average, had expected lower revenue of $3.15 billion.
The e-commerce and online payments company has been expanding into brick-and-mortar retailers. It recently launched a service that lets people use their PayPal accounts to pay for merchandise in Home Depot stores, a program likely to expand to other large retailers.
Net up at Marriott as room rates rise
Marriott says its first-quarter earnings edged up 3 percent as higher room prices countered the loss in revenue from the spin-off of its timeshare business.
It is predicting it will fetch higher room prices this year than it expected just three months ago. It sees 2012 earnings mostly above Wall Street’s expectations.
Marriott International Inc., which also operates Ritz-Carlton hotels, said Tuesday it earned $104 million, or 30 cents per share, compared with $101 million or 26 cents per share a year ago.
Revenue fell 8 percent to $2.55 billion from $2.79 billion a year earlier. Analysts expected a profit of 29 cents per share on revenue of $2.61 billion.
Marriott, based in Bethesda, Md., expects to earn between $1.58 and $1.69 per share for the year. Analysts expect $1.61.
VMware profit up in first quarter
VMware Inc., the biggest maker of software that enables computers to run multiple operating systems, forecast second-quarter sales that met analysts’ estimates as more companies sign contracts for its software.
Sales in the quarter ending June 30 will be $1.1 billion to $1.12 billion, the Palo Alto, Calif. company said Wednesday in a statement.
VMware is benefiting as customers install its virtualization software to cut costs by making their servers more efficient and by setting up data centers for cloud computing. The company signed more software licenses as customers look to combine programs onto a smaller number of servers, said Rob Owens, an analyst at Pacific Crest Securities in Portland, Ore.
VMware, a publicly traded unit of Hopkinton storage giant EMC Corp., said first-quarter net income rose to $191.4 million, or 44 cents a share, from $125.8 million, or 29 cents, a year earlier. Sales in the period rose to $1.06 billion from $843.7 million, exceeding a $1.03 billion analysts’ estimate.