Categories Earnings, Finance

PayPal jumps on upbeat Q3, becomes China’s maiden foreign payments platform

PayPal Holdings (NASDAQ: PYPL) on Wednesday reported third-quarter revenues of $4.38 billion, up 19% year-over-year, narrowly surpassing Wall Street prediction of $4.35 billion.

Adjusted net income for the quarter grew to 61 cents per share from 58 cents per share last year. Analysts had, on an average, expected Q3 earnings of 52 cents per share.

Image Courtesy: PayPal

Net new active accounts of 9.8 million brought the total active accounts to 295 million accounts, up 16%. Payment transactions surged 25% to 3.1 billion, and $179 billion in total payment volume was up 25%.

PYPL shares jumped 4.5% immediately following the announcement. The stock, which is yet to fully recover from the downtrend that followed the second-quarter results, trades slightly above the $100-mark ahead of the earnings release. The shares have gained 16% since the beginning of the year. 

paypal Q3 2019 earnings infographic

READ: Budweiser, Corona to drive Anheuser Busch InBev Q3 earnings

Outlook

For full-year 2019, PayPal expects revenue to grow 15% on an FX-neutral basis, to a range of $17.70 – $17.76 billion. For the same period, GAAP EPS is anticipated in the range of $2.03 – $2.06 and non-GAAP EPS in the range of $3.06 – $3.08.

CEO Dan Schulman said, “This quarter we announced that we will be the first foreign payments platform to be licensed to provide online payment services in China, a very significant development that has the potential to meaningfully expand our addressable market.”

Last week, American Express (AXP) said its third-quarter earnings grew in double digits to $2.08 per share as revenues rose to about $11 billion helped by an increase in cardmember spending

Listen to on-demand earnings calls and hear how management responds to analysts’ questions

Also Read:  FactSet Research Systems Inc. (FDS) Q4 2020 Earnings Call Transcript

Most Popular

Weibo (WB) reports upbeat Q2 results as pandemic situation stabilizes in China

Chinese social media platform Weibo (NASDAQ: WB) reported a year-over-year decline in non-GAAP EPS and revenue for the second quarter of 2020. However, both the bottom line and topline numbers

Software companies that witnessed growth during the COVID-19 pandemic

The business world experienced a heavy wave of change this year due to the COVID-19 pandemic which led several companies to move their operations online and allow their employees to

Accenture (ACN) drops 7% after missing Q4 estimates and weak guidance

Business consulting services provider Accenture (NYSE: ACN) reported its fourth quarter and fiscal 2020 earnings last Thursday. Accenture's failure to meet the market's earnings and revenue targets and the weak

Top