Were PayPal’s Q2 Earnings Good Enough?
Investor enthusiasm in the wake PayPal's second-quarter earnings beat appears to have been short lived.
When PayPal Holdings Inc. (NASDAQ: PYPL) reported its second-quarter financial results after the markets closed on Wednesday, the online payment giant posted $0.46 in earnings per share (EPS) and $3.14 billion in revenue. That compared with consensus estimates of $0.42 in EPS and $3.1 billion in revenue.
During the reported quarter, the firm noted 6.5 million active customer accounts added, with net new additions up 80%, ultimately ending the period with 210 million active customer accounts, including 17 million merchant accounts.
At the same time, 1.8 billion payment transactions were processed, an increase of 23% from last year. There were a total of 32.3 payment transactions per active account on a trailing 12 month basis.
PayPal also had a total payment volume of $106 billion, which was up 23% from last year, or 26% on a currency-neutral basis.
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In terms of guidance, the company expects to see EPS in the range of $0.42 to $0.44 and revenues between $3.14 billion and $3.19 billion. The consensus estimates call for $0.42 in EPS and $3.13 billion in revenue for the coming quarter.
Dan Schulman, president and CEO of PayPal, commented:
The accelerating and extensive scale of our two-sided global platform creates a strong foundation for PayPal’s growth, enabling consumers and merchants to transact in new contexts and across operating systems, technologies and platforms. Our strong results reflect PayPal’s transformation from a single product to a platform company, from a vendor to a strategic partner to both merchants and ecosystem players, and from a checkout option to an increasingly more central way for consumers to manage and move their money.
Shares of PayPal were last seen trading up fractionally at $59.00, with a consensus analyst price target of $56.50 and a 52-week range of $36.28 to $59.38.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
