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Will PayPal surpass its all-time high ahead of Q1 earnings?

PayPal Holdings (NASDAQ: PYPL) is set to report its first quarter 2019 earnings results on April 24 after the market closes. The fintech service firm’s stock hit an all-time high ($109.00) on April 15, Monday. Analysts project PayPal to report earnings of 68 cents per share on revenue of $4.13 billion, which comes at the high end of company’s adjusted EPS outlook range of $0.66 to $0.68 and sales forecast range of $4.08 billion to $4.13 billion.

For the fiscal year 2019, PayPal had projected revenue to come in a range of $17.85 billion to $18.10 billion and adjusted EPS to be in the range of $2.84 and $2.91.

For the fourth quarter of 2018, PayPal reported mixed results. While profit surpassed consensus estimates, revenue narrowly missed the views. Earnings rose 26% year-over-year to 59 cents per share and revenue increased 13% to $4.23 billion. Total payments volume (TPV) surged 23% year-over-year to $164 billion and mobile payments volume jumped 40%, aided by higher mobile engagement on the PayPal platform.

In Q4, net new active accounts spiked nearly 59% to 13.8 million with 2.9 million coming through acquired companies. Active accounts rose 17% to 267 million and payment transactions done by users increased 28% to 2.9 billion.

The San Jose, California-based payments company had surpassed earnings estimates in all the four quarters in the last year. The same upbeat trend is likely to continue in the recently ended quarter. Venmo, PayPal’s P2P social platform, and the recent acquisitions are expected to benefit PayPal.

The strong consumer demand in India, the progress PayPal making in Japan plus the partnership efforts suggest that 2019 is shaping up well for the company. Last week, WSJ reported that Venom is discussing with Synchrony Financial (SYY) to offer its credit card.

eBay (EBAY), parent company of PayPal, will be reporting its quarterly results on Tuesday after the market closes.

PayPal shares, which closed down 0.51% at $106.81, have gained 27% since the beginning of 2019 and 36% in the past 12 months.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

 

Categories: Earnings Finance
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