PayPal Earnings Beat; Guidance Light Amid New CEO’s Growth Plans

Must read

PayPal Holdings (PYPL) on Wednesday reported September-quarter earnings that topped consensus estimates while revenue edged by views. Earnings guidance for PYPL stock for the fourth quarter came in below expectations amid expected higher investments by a new chief executive.


Also, PayPal named a new chief financial officer: Jamie Miller, formerly CFO at consultancy EY. She earlier also had CFO positions at Cargill and General Electric (GE).

Released after the market close, PayPal earnings for the third quarter rose 20% to $1.30 per share on an adjusted basis. Revenue climbed 8% to $7.4 billion.

Analysts expected PayPal earnings of $1.23 a share on revenue of $7.38 billion. A year earlier, PayPal earned $1.08 a share on sales of $6.85 billion.

PYPL Stock: Earnings Guidance Light

Total payment volume processed from merchant customers in the quarter climbed 15% to $387.7 billion. Analysts had projected total payment volume of $379.3 billion.

For the current quarter ending in December, PayPal predicted earnings of $1.36 a share at the midpoint of its outlook. Analysts had called for earnings of $1.40 a share.

“Q4 outlook is below street on revenue and EPS, though we believe the more salient number will be what’s implied for the pace of improvement in transaction gross profit,” said Jefferies analyst Trevor Williams in a note.

On the stock market today, PYPL stock rose 1.8% to 52.55 in extended trading. Heading into the PayPal earnings report, shares were down 26% in 2023.

New CEO Alex Chriss took the helm in late September.

San Jose, Calif.-based PayPal has evolved from an online checkout site to a mobile shopping and person-to-person payments site. Meanwhile, competition has heated up with Apple (AAPL), Square-parent Block (SQ) and others.

PYPL stock has retreated from an all-time high of 310.16, reached on July 26, 2021.

Follow Reinhardt Krause on X,  formerly called Twitter, @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.


IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today

Learn How To Time The Market With IBD’s ETF Market Strategy

How To Use The 10-Week Moving Average For Buying And Selling

Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest

More articles

Latest article