eBay beats the Street

January 15, 2002 Posted: 2215 GMT

NEW YORK (CNN/Money) -- Internet auction site eBay Inc. reported fourth-quarter earnings per share that beat Wall Street estimates by a penny and affirmed its guidance for the first half of 2002.

The company reported fourth-quarter earnings excluding certain items of $38.5 million, or 14 cents per share, compared to earnings before certain items of $25 million, or 9 cents per share, in the same quarter a year ago.

Revenue for the quarter soared 63 percent from the year-ago quarter to $219.4 million.

On average, analysts surveyed by First Call expected the company to earn 13 cents per share on revenue of $212.1 million.

"Our fourth-quarter results capped off an outstanding year," said Meg Whitman, eBay president and CEO, in a statement. "We have excellent momentum going into 2002 and feel confident with our long-term strategy, ongoing execution and the inherent strength of our business mode."

Looking ahead, eBay (EBAY: Research, Estimates) said it believes revenue for the first half of 2002 will be about $490 million to $510 million with earnings per share of 32 or 33 cents per share.

Both are in line with Wall Street's current estimates, according to First Call.

The company said it expects much of its 2002 revenue growth to be driven by transactions and that online advertising revenue will be down in the first quarter of 2002 as the difficult ad environment continues.

Thomas Underwood, analyst with Legg Mason, said before earnings were released he expected the company to boost 2002 guidance.

Shares of eBay fell $2.07 to $61.96 after hours.