EBay Beats Q4 EPS, 2015 Outlook Includes 2,400 Job Cuts

eBay Inc EBAY reported fourth quarter financial results Wednesday with revenue coming in at $4.921 billion, below estimates of $4.93 billion, an increase of 9 percent compared to the same period in 2013.

GAAP earnings were $936 million or $0.75 per diluted share, and Non-GAAP earnings were $1.1 billion or $0.90 per diluted share, $0.01 above estimates.

"In a year of unexpected events and distractions, we ended 2014 with double-digit revenue growth, solid earnings growth and strong cash flow, reflecting the fundamental strengths of our company," said John Donahoe, president and CEO of eBay.

According to the press release, during the first quarter, eBay plans to reduce its workforce globally by approximately 2,400 positions which a represents about 7 percent of its total workforce across eBay Marketplaces, PayPal and eBay Enterprise. The company will also be exploring strategic options for eBay Enterprise, including a sale or IPO.

For the first quarter of 2015, the company expects net revenues in the range of $4.35-$4.45 billion with GAAP earnings per diluted share in the range of $0.37-$0.43 and non-GAAP earnings per diluted share in the range of $0.68-$0.71. Analysts had estimated Q1 revenue at $4.7 billion with non-GAAP EPS of $0.76.

For the full year 2015, the company expects net revenues in the range of $18.60-$19.10 billion with GAAP earnings per diluted share in the range of $2.17-$2.32 and non-GAAP earnings per diluted share in the range of $3.05-$3.15. Analysts had estimated 2015 revenue at $19.97 billion with non-GAAP EPS of $3.26.

In January 2015, the company's board of directors authorized an additional $2 billion stock repurchase program. Together with the $1 billion remaining under the company’s prior stock repurchase program authorized in January 2014, the company's total repurchase authorization as of January 21, 2015 is $3 billion.

eBay traded at $55.30 in the after-hours market, up 3.3 percent.