PayPal as COVID-19 raises the biggest earnings expectations, which is the big growth of e-commerce

PayPal Holdings Inc. Shares of
+ 4.72%
Wednesday’s turnover rose more than 3% after the digital payments company’s earnings and revenue expectations amid a boom in online payments. (See more about the company’s earnings in Marketwatch’s interview with CEO Dan Shulman.) PayPal reported net income of $ 1.53 billion, or $ 1.29 cents per share, $ 823 million, or 69 cents per share, year-over-year. Posted in quarter. PayPal’s adjusted earnings per share rose to $ 1.07 from 71 cents a year earlier, while analysts polled by FactSet modeled 87 cents. This includes a 7-percent negative impact from the credit-loss reserve. Revenue for the quarter climbed to $ 5.26 billion from $ 4.36 billion. FactSet Consent calls for $ 4.99 billion. PayPal’s total payment volume, or the value of transactions flowing through the PayPal platform, increased from $ 172 billion to $ 222 billion, while analysts were looking for $ 210 billion. The company also saw about $ 37 billion in Venmo payments. In total, PayPal added 21.3 million net new active accounts in the period. The company revealed that it had more than 60 million active Venmo accounts as of the second quarter, which the company defines as accounts that completed transactions within a 12-month period. For the third quarter, PayPal expected a 30% increase in total payment volume, a 25% increase in revenue on a currency-neutral basis, and a 25% increase in adjusted earnings per share. The company restored its 2020 forecast after pulling one earlier in the year due to uncertainties related to the epidemic. For the full year, the company expects a high -20% increase in total payment volume, a 22% increase in currency-neutral revenue, and a nearly 25% increase in adjusted EPS. PayPal shares have increased by 49% in the last three months as the S&P 500 SPX,
+ 1.24%
11% increase.


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