PayPal's Q3 report showed mixed results, with strong EPS growth but flat revenue and lackluster holiday quarter guidance, causing stock volatility. The company demonstrated improved fundamentals, including increased transactions per active account and strong cash flow, despite weak revenue growth. PayPal's aggressive strategic partnerships position it for long-term growth, with promising developments in branded checkout and Venmo monetization.
PayPal shares have surged 37.56% since July, driven by new leadership under CEO Alex Chriss and strategic partnerships, signaling a strong turnaround. Q3 earnings beat EPS estimates by over 12%, despite a slight revenue miss, showcasing durable growth and a focus on quality revenue. Key partnerships with Amazon, Shopify, and Apple enhance PayPal's market position, promising significant growth and mitigating competitive risks.
The initial market reaction to PayPal's Q3 2024 results seems justified on the basis of next quarter guidance. The Q4 guidance aside, active users are back to growth a quarterly basis and margins continue to improve. PayPal's remains attractively priced, both relative to peers and on a free cash flow basis.
With its transaction growth rates slowing and less than expected revenue guidance for the balance of the year, PayPal focused on its repositioning from peer-to-peer pioneer to two-sided payments technology platform in its Q3 earnings call Tuesday (Oct. 29).
PayPal Holdings (PYPL) shares slumped Tuesday after the payment services provider missed third-quarter sales estimates and gave weak guidance as the company moves ahead with its "price-to-value" strategy.
JP Morgan analyst Tien-tsin Huang maintained an Overweight rating on PayPal Holdings, Inc PYPL.
PayPal stock is up 36% this year.
PayPal Holdings, Inc. (NASDAQ:PYPL ) Q3 2024 Earnings Conference Call October 29, 2024 8:00 AM ET Company Participants Steve Winoker - Chief Investor Relations Officer Alex Chriss - President & CEO Jamie Miller - EVP & CFO Conference Call Participants Darrin Peller - Wolfe Research Tien-Tsin Huang - JP Morgan Ramsey El-Assal - Barclays Jason Kupferberg - Bank of America Dan Dolev - Mizuho Timothy Chiodo - UBS James Faucette - Morgan Stanley Harshita Rawat - Bernstein Trevor Williams - Jefferies Bryan Keane - Deutsche Bank Andrew Schmidt - Citi Operator Good morning, and welcome to PayPal's Third Quarter 2024 Earnings Conference Call. My name is Sarah, and I will be your conference operator today.
While the top- and bottom-line numbers for Paypal (PYPL) give a sense of how the business performed in the quarter ended September 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
PayPal Holdings Inc (NASDAQ:PYPL) and SoFi Technologies Inc (NASDAQ:SOFI) are fresh out of the earnings confessional.
Paypal (PYPL) came out with quarterly earnings of $1.20 per share, beating the Zacks Consensus Estimate of $1.08 per share. This compares to earnings of $1.30 per share a year ago.
The fintech beats quarterly earnings estimates and boosts a financial forecast for the fiscal year.