NEW YORK (CNN/Money) - On Thursday, Internet auction company eBay posted a second-quarter profit and revenue that topped Wall Street's estimates and raised its guidance for the rest of the year.

Additionally, eBay's board approved a two-for-one split of all outstanding shares, payable Aug. 28, to stockholders of record on August 4, 2003.

San Jose, Calif.-based eBay reported net income of $109.7 million, or 33 cents a share, doubled from $54.3 million, or 19 cents a share it earned a year earlier. Excluding amortization of goodwill, stock-based compensation expenses and acquisition-related costs, eBay earned 37 cents a share, above analysts' forecasts of 35 cents excluding charges, according to First Call.

But Ebay (EBAY: Research, Estimates)'s stock fell sharply to $110.89 in after-hours trading, according to Instinet, after gaining just over 1 percent to $115.74 during regular trading on Nasdaq.

Sales for the quarter rose to $509 million, from $266 million for the same period last year. The consensus estimate was for sales of $506 million.

"This was a decent quarter, and the company exceeded both on the top and bottom line," said Jeetil Patil, analyst with Deutsch Bank -- North America.

"Their guidance for the rest of the year was also appropriately conservative and it shows that their business model continues to work for them," he added.

The company said it now expects 2003 revenue to be as high as $2.08 billion, $25 million higher than its earlier guidance, citing strength from its U.S., international and payment businesses.

Rajiv Dutta, eBay's chief financial officer, said during a conference call that it expects online activity to be somewhat slower during the summer months as more people schedule vacations. Dutta added that business could be further impacted after it begins to charge its European sellers value added tax (VAT) to comply with a new European Union law.

For the full year, eBay expects to earn $1.47 a share excluding items, 6 cents higher than its previous estimate and a penny above analysts' estimates.

It forecast third-quarter profit of 34 cents a share, a penny below analysts' forecasts, and 40 cents a share for the fourth quarter, in-line with Wall Street estimates.

Net revenue for eBay's online payment services company, PayPal, were $101.5 million, an 89 percent increase from $53.8 million last year.

Registered users, another key metric for the company, showed strong growth. eBay had 75.3 million registered users at the end of the quarter, up 51 percent from a year ago and up 6.5 million sequentially.