(Reuters) - Ebay Inc will begin paying a dividend, it announced on Tuesday, while also reporting better-than-expected sales and profit for the fourth quarter as it benefits from a rise in online shopping.
EBay's shares rose 4 percent in after-hours trading after the online retailer set a quarterly dividend of 14 cents per share and announced an increase to its share buyback program of $4 billion.
EBay's results for the final quarter of 2018 showed sales had risen 6.3 percent year-over-year to $2.88 billion, exceeding Wall Street's average estimate of $2.66 billion, according to IBES data from Refinitiv.
The results and dividend come as eBay faces increased calls from two high-profile shareholders — Elliott Management and Starboard Value — to sell some divisions and restructure others.
A multi-year effort by eBay to make its platform simpler to user, by introducing grouped listings, personal recommendations and an easier-to-use payment process is helping yield results for the San Jose, California-based e-commerce company.
EBay said quarterly net income from continuing operations reached $763 million or 80 cents per share, compared with a loss of $2.6 billion or $2.51 per share, a year earlier, when it recorded a one-time tax-related expense of more than $3 billion.
Excluding one-time items, the company earned 71 cents per share, beating analysts' average estimate of 68 cents.
(Reporting by Sai Sachin Ravikumar)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Firstpost is now on WhatsApp. For the latest analysis, commentary and news updates, sign up for our WhatsApp services. Just go to Firstpost.com/Whatsapp and hit the Subscribe button.
Updated Date: Jan 30, 2019 04:05:32 IST