The headline numbers for Paypal (PYPL) give insight into how the company performed in the quarter ended December 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Paypal (PYPL) came out with quarterly earnings of $1.19 per share, beating the Zacks Consensus Estimate of $1.13 per share. This compares to earnings of $1.48 per share a year ago.
U.S. stock futures were mostly lower this morning, with the Dow futures falling around 100 points on Tuesday.
PayPal's stock is down 6%, with an analyst noting that growth in branded-checkout volume seems to have trailed buy-side expectations.
PayPal forecast full-year profit above estimates on Tuesday, fueled by a push to revive growth in branded products, improve pricing and sharpen cost-cutting efforts, sending shares of the digital payments giant up 5% in premarket trading.
PayPal reported better-than-expected fourth-quarter earnings and revenue in its quarterly report on Tuesday. The company also issued guidance that topped estimates.
The fintech easily beats quarterly estimates for earnings and sales.
PayPal's stock has outperformed the market, driven by its strong market position and resilience against competitors like Apple's Afterpay and X's social payment initiatives. The partnership between X and Visa enhances social payments, benefiting PayPal, which already leads in this space with Venmo and Meta collaborations. Despite mixed EPS and revenue estimates for Q4, PayPal's long-term EPS growth and strategic partnerships justify a premium valuation and a strong buy recommendation.
PYPL stock is benefiting from a strong portfolio, rich partner base and expanding features amid a challenging macroeconomic environment.
Looking beyond Wall Street's top -and-bottom-line estimate forecasts for Paypal (PYPL), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended December 2024.
Although PYPL's cheap valuation is noteworthy, lower Braintree volume and revenue growth in the near term, as well as higher expenses, are headwinds.
PayPal (NASDAQ: PYPL) is once again in the spotlight as analysts evaluate its trajectory heading into 2025. With its fourth-quarter earnings report set for February 4, investors are closely watching whether the fintech giant can sustain its recent rebound amid lingering uncertainties.