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PayPal (PYPL) Posts Earnings Beat, Total Payment Transactions Up 25%

Madeleine Johnson
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Should Value Investors Buy inTest (INTT) Stock?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

PayPal Inc. PYPL just released its latest quarterly financial results, posting earnings of 57 cents per share and total revenues of $3.69 billion.

Currently, PYPL is a Zacks Rank #3 (Hold), but that could change based on today’s results. Estimates have increased by a penny for the current year over the last two months, and the Zacks Consensus sits at $2.29 per share.

Shares of the payment solutions company have climbed over 68% in the last year and closed the trading day down 1.7%. The stock is up around 2.7% in after-hours trading shortly after the earnings report was released.

PayPal:

Beats earnings estimates. The company reported earnings of 57 cents per share, topping the Zacks Consensus Estimate of 54 cents per share. EPS grew 29% from the prior-year quarter.

Beat revenue estimates. The company saw revenues of $3.69 billion, surpassing our consensus estimate of $3.58 billion and increasing 24% year-over-year.

During the quarter, there were 8.1 million active accounts added, with net new actives up 35%.

Additionally, payment transactions hit 2.2 billion, an increase of 25% year-over-year. Total payment volume (TPV) was $132 billion, growing 32% year-over-year, while PayPal saw 34.7 payment transactions per active account on a TTM basis, up 8%.

Looking at Venmo, the social payments platform saw over $40 billion of TPV over the last year.

For full year 2018, PayPal expects revenue to grow 16% to 18% in a range of $15.2 billion to $15.4 billion, with non-GAAP EPS should fall between $2.31 and $2.34 per share.

"After a strong 2017, we entered 2018 with continued momentum. Our partner relationships in the U.S. and across the globe continue to grow and flourish. As the digital economy gathers speed, we are excited to provide new and innovative capabilities to better serve our consumer and merchant customers," said Dan Schulman, President and CEO of PayPal.

Here’s a graph that looks at PayPal’s recent earnings performance:

 

PayPal Holdings, Inc. Price, Consensus and EPS Surprise

PayPal Holdings, Inc. Price, Consensus and EPS Surprise | PayPal Holdings, Inc. Quote

 

 

PayPal is a technology platform company. The company offers online payment solutions which allow customers to pay and get paid, withdraw funds to their bank accounts and hold balances in their PayPal accounts in various currencies. It payment platform includes PayPal, PayPal Credit, Venmo and Braintree products. PayPal is based in San Jose, California.

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