PayPal Holdings (PYPL) reported earnings for the September quarter that exceeded consensus estimates while revenue slightly missed expectations. However, the company’s earnings guidance for the fourth quarter fell short of expectations due to anticipated higher investments under the new CEO.
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In addition, PayPal announced the appointment of Jamie Miller as its new chief financial officer. Miller, previously the CFO at consultancy EY, has also held CFO positions at Cargill and General Electric (GE).
Following the market close, PayPal reported adjusted earnings of $1.30 per share for the third quarter, a 20% increase YoY. Revenue for the quarter rose 8% to $7.4 billion.
Analysts had anticipated PayPal earnings of $1.23 per share on revenue of $7.38 billion. In the same quarter last year, PayPal had earnings of $1.08 per share on sales of $6.85 billion.
Earnings Guidance for PYPL Stock
Total payment volume from merchant customers increased by 15% to $387.7 billion in the quarter, surpassing analysts’ projections of $379.3 billion.
For the current quarter ending in December, PayPal projected earnings of $1.36 per share, falling slightly below analysts’ expectations of $1.40 per share.
“Q4 outlook is below street on revenue and EPS, though we believe the more salient number will be what’s implied for the pace of improvement in transaction gross profit,” noted Jefferies analyst Trevor Williams in a research note.
During extended trading, PYPL stock rose 1.8% to $52.55. Prior to the earnings report, the stock had declined by 26% in 2023.
Alex Chriss assumed the position of CEO in late September.
Based in San Jose, California, PayPal has transformed from an online checkout site to a platform for mobile shopping and person-to-person payments. However, it faces increasing competition from companies like Apple (AAPL) and Square-parent company Block (SQ).
PYPL stock has retreated from its all-time high of $310.16, which was reached on July 26, 2021.
Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity, and cloud computing.
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