Online trading community eBay Inc has posted fourth-quarter results that beat analysts’ estimates, and authorized a three- for-one stock split. The San Jose-based company reported fourth- quarter net income of $1.5m on revenue of $19.5m, up from net income of $189,000 on revenue of $2.6m in the year-ago quarter. Earnings per share rose to $0.04 from $0.01 for the period. Excluding non-cash charges related to stock compensation and acquisition expenses of $1.3m, the company would have posted $0.07 per share, beating the First Call estimate of $0.04. The strong results for the quarter were driven by increased activity and surging merchandise sales – representing the value of goods traded on the company’s site – which rose 57% from the prior quarter to $307m, The number of registered users increased by nearly 920,000, or 72%, since September 30 to top 2.1 million as of December 31. eBay also says it hosted over 13.6 million auctions during the quarter, up from 9.2 million in the third quarter. For the full year, net income rose 174% to $2.4m on revenue that rose to $47.4m from $5.7m last year. Earnings per share rose 100% to $0.06 for the year. Full -year results also include non-cash charges of $5.5m. Separately, the company celebrated its progress by announcing a three-for-one stock split, effective March 1. The shares closed Tuesday at $220.875, up $3.375 for the day. The shares were initially offered to the public at just $18 last September and their subsequent meteoric rise has given the small company a huge market capitalization of $8.89bn.
