EBay Q4 Profit Tops Estimates; To Reduce Workforce By Approx. 2,400 Positions

(RTTNews) - eBay Inc. (EBAY) reported fourth-quarter net income of $936 million or $0.75 per share, compared to $850 million or $0.65 per share, prior year. Adjusted earnings per share was $0.90, for the quarter.

On average, 39 analysts polled by Thomson Reuters expected the company to report profit per share of $0.89 for the quarter. Analysts' estimates typically exclude special items.

Net revenue increased to $4.92 billion from $4.53 billion last year. Analysts expected revenue of $4.93 billion for the quarter.

The company expects first-quarter net revenues in the range of $4.35 billion - $4.45 billion with GAAP earnings per share in the range of $0.37 - $0.43 and non-GAAP earnings per share in the range of $0.68 - $0.71. Analysts expect the company to report first-quarter earnings per share of $0.76 on revenue of $4.70 billion.

The company expects full year 2015 net revenues in the range of $18.60 billion-$19.10 billion with GAAP earnings per share in the range of $2.17 - $2.32 and non-GAAP earnings per share in the range of $3.05 - $3.15. Analysts expect the company to report full year 2015 earnings per share of $3.26 on revenue of $19.97 billion.

Looking forward to 2015, the company said it will be simplifying organizational structures. During the first quarter, the company plans to reduce workforce globally by approximately 2,400 positions which a represents about 7% of 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.

The company also announced it has entered into a standstill agreement with investor Carl Icahn, the company's largest active shareholder. In addition to certain corporate governance provisions to be adopted by PayPal as an independent company at the time of its spin-off from eBay Inc., the agreement also appoints Icahn Capital executive Jonathan Christodoro to eBay Inc.'s current Board.

The company also announced the appointment of seasoned Wall Street executives Frank Yeary and Perry Traquina to its board. These appointments bring the total number of directors to 15, 13 of whom are independent.