Shares in eBay jumped more than 13 per cent overnight on Wall Street after the online auction operator reported profits and sales well ahead of analysts’ estimates and raised its forecast for the current quarter.

The stock soared to $39.55 after profits surged 53 per cent to 21 cents a share, and the company raised revenue and net profit forecasts in the current third quarter.

The company’s second-quarter revenue rose 40 per cent to $1.09 billion, on strong US and German growth.

Analysts had expected eBay to earn 18 cents a share on sales of $1.04 billion in the second quarter.

EBay hiked revenue forecasts for its current third-quarter to a range of $1.05 billion to $1.07 billion from a previous estimate of $1.04 billion to $1.06 billion.

"It’s a very aggressive increase in guidance," eBay Chief Financial Officer Rajiv Dutta told Reuters, adding that it incorporated expectations for a stronger dollar, which would hit overseas earnings.

The strong results offset concerns over slower growth at eBay and supported sentiment in the technology sector after shares in Yahoo, the internet giant, plunged this week following results that failed to meet expectations.

The Nasdaq-100 After Hours Indicator, which tracks the evening action of the technology-heavy index’s leading shares, was up 8.17 points to 1610.92.

EBay offers users the opportunity to buy and sell goods online, ranging from second-hand records to cars and jet planes. Some enthusiasts now earn their livings by trading on the site, which gives access to a massive global marketplace for comparatively tiny overheads.

The eBay phenomenon has become global. Revenue in the United States rose 27 per cent to $423.6 million in the second quarter from a year ago - faster than the 20 per cent gain in the first quarter. Revenue outside the US increased 51 per cent to $418.8 million.

Times Recommends

• Food prices rise 8.3% on soaring fish and meat
• Car sales crash as economy hits skids
• House prices fall but Bank leaves rates on hold