Shares of eBay (EBAY) are up 4% after the e-commerce company raised its dividend payment to shareholders by 8% and announced a new $2 billion U.S. stock repurchase program.
Moving forward, eBay will pay shareholders a quarterly dividend payment of $0.27 U.S. per share, up from $0.25 U.S. a share previously.
The increased payout to stockholders lifts the dividend yield on eBay’s stock above 2.30%.
The dividend hike and stock buyback program were announced alongside quarterly results that beat analysts’ estimates.
The company reported earnings per share (EPS) of $1.07 U.S., which topped Wall Street forecast that called for a profit of $1.03 U.S. a share.
Revenue in the final quarter of 2023 came in at $2.56 billion U.S., which was better than the $2.51 billion U.S. expected among analysts.
In terms of guidance, eBay forecast first quarter 2024 revenue of $2.54 billion U.S., which is ahead of analyst forecasts of $2.53 billion U.S.
In January of this year, eBay announced plans to cut 9% of its workforce, or about 1,000 employees, as it grapples with what it called a “challenging economy.”
Prior to today (Feb. 28), eBay’s stock had declined 3% over the last 12 months to trade at $44.39 U.S. per share.
