The Yahoo Finance Live team discusses Paypal's Q1 earnings, job cuts, and its boosted forecast for full-year profits.
Video Transcript
AKIKO FUJITA: Let's go to Seana now standing by with the latest earnings results from PayPal.
SEANA SMITH: Yeah, Akiko, taking a look at the stock here in extended trading, off nearly 4%. A bit surprising because PayPal did beat in Q1. It also raised its full year forecast. Despite that, though, we are seeing some pressure on shares in extended trading.
And I think that specifically is a result of what they had to say about the current quarter. Second quarter adjusted EPS is at the low end of the range of $1.15 to $1.17. The Street was looking for $1.17 here. So that could be one of the reasons why the stock is under pressure here in extended trading.
But again, for the quarter, it was a pretty solid number here from PayPal. Their total payment volume was up 10% on a year over year basis. They also boosted their full year profit guidance here, which may have caught some on the Street by surprise, given the fact that so many consumers have been pulling back a bit on their spending-- or we were expected to see a larger pullback on spending in Q1.
And we also want to point out that PayPal did cut 2,000 workers-- announced now its plans to cut 2,000 workers, citing that macro slowdown, needing to make some adjustments here to their business given the fact that we are seeing a broader slowdown here. But PayPal, again, shares, Akiko, under pressure, off just about 4%. I think a lot of that has to do with what they're planning to see or what they expect to see in the current quarter adjusted EPS.
AKIKO FUJITA: Yeah, PayPal always a good indication of the consumer-- at least a good pulse. It's going to be interesting to hear, also, if we hear any commentary from the company on succession plans. Of course, people watching Dan Schulman, who's leaving at the end of the year-- says he's planning to leave at the end of the year. So we'll be listening for any comments on that front as well.
