EBay Inc. reported Wednesday that fourth-quarter profit increased 24 percent from the same period last year, trouncing Wall Street estimates and prompting executives to raise estimates for the current quarter. Thanks to scorching holiday sales – particularly in eBay’s traditional strongholds of the U.S., the United Kingdom and Germany – the San Jose, Calif.-based online auction company earned $349 million, or 25 cents per share, for the three months that ended Dec. 31. It earned $279 million, or 20 cents per share in the year-ago period. Shares of eBay jumped to $33.05, up an additional 10.2 percent, in after-market trading.
An $800 million hit to California citrus
Citrus growers said Tuesday they lost at least $800 million during a recent five-day freeze, the most devastating blow to the industry in more than a decade. The report by California Citrus Mutual is the first detailed accounting of the cold snap – originally estimated to cost nearly $1 billion – that is expected to leave 12,000 workers out of jobs and increase fruit prices. More than 70 percent of the state’s citrus crop was hanging on the trees during the frost earlier this month, ruining most navel and Valencia oranges, nearly all of the tangerines and damaging lemon trees in the Imperial Valley, said Joel Nelsen, president of California Citrus Mutual, a trade organization.
Spinoff supersizes McDonald’s profit
McDonald’s Corp., the world’s largest fast-food chain, said Wednesday that its fourth-quarter profit more than doubled, thanks in large part to the spinoff of the Chipotle burrito chain and strong sales in Europe. The earnings were in line with preliminary results released last week but the stock slipped after some analysts said operating profits were below their expectations. The restaurant company earned $1.2 billion, or $1 a share, in the quarter ending Dec. 31. That was up from $608.5 million, or 48 cents a share, during the same period last year. McDonald’s revenue climbed 11 percent to $5.6 billion, from $5.01 billion during the year-ago period.
Customer growth aids Netflix profit
Netflix Inc.’s fourth-quarter profit surpassed analyst expectations as 654,000 more subscribers signed up for its online DVD rental service, but the customer growth lagged Blockbuster Inc.’s – a development that underscores the intensifying competition between the rivals. Los Gatos, Calif.-based Netflix said Wednesday that it earned $14.9 million, or 21 cents per share, during the final three months of 2006. That was down 61 percent from net income of $38.2 million, or 57 cents per share, in the prior year, but those results were pumped up by a $35 million windfall from taxes. The most recent quarter’s profit easily exceeded the average estimate of 15 cents per share among analysts polled by Thomson Financial.
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