EBay's results top Wall Street targets but outlook disappoints

E-commerce giant eBay Inc forecast a smaller-than-expected second-quarter profit on Tuesday and will take a $3 billion non-cash tax charge to repatriate foreign earnings that will more than double its available U.S. cash. Shares of eBay fell 3 percent in after-hours trading despite the company's higher-than-expected first-quarter profit. During the quarter, eBay took a $3 billion non-cash tax charge to access $9 billion in foreign earnings. Some investors were expecting an even larger first-quarter beat after activist investor Carl Icahn ended his campaign to force eBay to spin out PayPal earlier this month, Wedbush Securities analyst Gil Luria said.

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