EBay Inc. gave a quarterly profit forecast that topped estimates as the Web marketplace recovers from a security breach that forced users to change passwords and a Google Inc. search change that curbed traffic to the site.
Revenue for the second quarter will be $4.4 billion to $4.5 billion, the San Jose, California-based company said in a statement Wednesday. Profit before certain items will be 71 cents to 73 cents a share. Analysts on average projected sales of $4.57 billion and profit of 71 cents, according to data compiled by Bloomberg.
The recovery blunted concerns that EBay would lose some of its value once it separates from PayPal, the faster-growing payments division, under a planned split later this year. That could also make the marketplace business, which draws 155 million shoppers per quarter, more attractive as an acquisition. The split is on track to happen in the third quarter, the company said.
The management team talked a lot last year about Google search changes and the security breach, said Gil Luria, an analyst at Wedbush Securities Inc. If those issues start going away, people will give the marketplace more weight and value it a little higher before the split.
First-quarter sales rose 4.4 percent to $4.45 billion, EBay said.