EBay shares are surging after earnings crush expectations

An eBay sign is seen at an office building in San Jose, California May 28, 2014. REUTERS/Beck Diefenbach Thomson ReutersAn eBay sign is seen at an office building in San Jose, California

EBay reported a 4.4 per cent rise in quarterly revenue, helped by higher revenue in its payments business, which includes PayPal.

PayPal is set to be spun off later this year.

EBay reported net income of $US626 million, or 51 cents per share, for the first quarter ended March 31 compared with a loss of $US2.33 billion, or $US1.82 per share, a year earlier.

Net revenue rose to $US4.45 billion from $US4.26 billion.

Revenue from the company’s payments business rose about 14 per cent to $US2.11 billion.

eBay shares were up more than 4.5% after hours following the announcement.

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