Categories AlphaGraphs, Earnings, Finance

PayPal reports mixed bag of results for Q2; provides dismal revenue outlook

PayPal Holdings (NASDAQ: PYPL) surpassed Q2 earnings estimates, while its revenue fell short of the expectations. The digital payments platform reported adjusted EPS of $0.86 on revenue of $4.31 billion. Wall Street estimated the company to earn $0.74 per share on revenue of $4.33 billion. PayPal stock dropped about 6% in the extended trading hours as the company provided dismal revenue outlook for FY19.

PayPal (PYPL) Q2 2019 earnings surpass estimates, while revenue misses analysts; projections. PayPal stock drops 6% in extended trading hours

GAAP EPS of $0.69, increased 58% over the prior-year quarter. Net new active accounts of 9 million brought the total active accounts to 286 million accounts, up 17%. Payment transactions surged 28% to 3 billion and $172 billion in total payment volume was up 24%, or 26% on an FX-neutral basis.

For full-year 2019, PayPal expects revenue to grow 14-15% at current spot rates and 14-15% on an FX-neutral basis, to a range of $17.60-17.80 billion. This guidance includes an expected decline of approximately 3.5 percentage points for full year 2019 related to the sale of U.S. consumer credit receivables portfolio to Synchrony.

Full-year 2019 GAAP EPS is touted to be between $2.16 and $2.22 and non-GAAP EPS is seen in the range of $3.12 to $3.17. EPS guidance for full year 2019 includes $0.26 of unrealized gains from PayPal’s strategic investments recognized in the first and second quarters of 2019 and an approximate $0.03 of expected net unrealized gains related to PayPal’s strategic investment portfolio in Q3 2019.

For the third quarter of 2019, PayPal expects revenue to grow 18-19% both at current spot rates and FX-neutral basis, to a range of $4.33-4.38 billion. GAAP EPS is projected in the range of $0.32 to $0.35 and non-GAAP EPS is expected to be in the range of $0.69 to $0.71.

Also read: Positive momentum likely to continue in Twitter’s Q2 earnings

“PayPal delivered another solid quarter, and consequently we are raising EPS guidance for the year. Net new active accounts increased by a record 41 million over the last 12 months, and engagement per active account once again increased by 9% to 39 times a year,” said CEO Dan Schulman.

Also Read:  Major earnings conferences to watch for the week of Sept. 21

Payment gateway firm Visa (NYSE: V) reported its third quarter 2019 results yesterday. While the results surpassed estimates, Visa stock dropped as it cut down FY19 earnings outlook.

Shares of PayPal, which reached its all-time high ($121.48) last week, have surged 44% so far in this year and 32% in the past 12 months.

We’re on Apple News! Follow us to receive the latest stock market, earnings and financial news at your fingertips

 

Most Popular

Highlights of Aurora Cannabis (ACB) Q4 2020 earnings report

Aurora Cannabis, Inc. (NYSE: ACB) reported a wider loss for the fourth quarter of 2020, hurt by a 5% decrease in revenues. The company’s stock fell sharply during Tuesday’s after-hours

Infographic: Stitch Fix Q4 2020 earnings

Stitch Fix (NASDAQ: SFIX) reported fourth-quarter 2020 financial results after the closing bell on Tuesday. The company reported an 11% increase in Q4 revenues to $443.4 million, beating Wall Street

Nike Inc. (NKE) stock spikes after beating Q1 2021 estimates

Nike Inc.'s (NYSE: NKE) profit and revenue in the first quarter of fiscal 2021 surpassed the market's estimates and sent the NKE stock up by about 7% in the extended

One thought on “PayPal reports mixed bag of results for Q2; provides dismal revenue outlook

Comments are closed.

Top