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PayPal (PYPL) to Report Q2 Earnings: What's in the Cards?
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PayPal Holdings, Inc. (PYPL - Free Report) is set to report second-quarter 2016 results on Jul 21. Last quarter, the payment company posted a positive surprise of 6.67%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
PayPal Holdings is a technology platform, which offers online payment solutions. These allow customers to pay and get paid, withdraw funds from their bank accounts and hold balances in their PayPal accounts in various currencies. Its payment platform includes PayPal, PayPal Credit, Venmo and Braintree products.
In the last reported first quarter, PayPal gave decent numbers with both revenues and earnings exceeding the Zacks Consensus Estimate driven by strong payment volumes and increasing customer accounts. The company’s active account base grew by 4.5 million, ending the year with 184 million active customer accounts.
PayPal is focusing on its core capabilities and is operating with greater flexibility for success in the digital payments space. Its foray into mobile payments with the Braintree acquisition and its One Touch system reflects the same. The company has also signed a few strategic agreements to expand the acceptance of PayPal payments system among new clients and businesses. These efforts will continue to drive the company’s top line in the upcoming quarter.
However, intensifying competition in the payments – especially mobile – space can be a headwind for the company.
Earnings Whispers?
Our proven model does not conclusively show that PayPal will beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here as you will see below.
Zacks ESP: The Most Accurate estimate stands at 28 cents, while the Zacks Consensus Estimate is pegged higher at 30 cents. Hence, the difference is -6.67%.
Zacks Rank: PayPal has a Zacks Rank #4 (Sell).
We caution against stocks with Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Here are some companies, which you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Coeur Mining, Inc. (CDE - Free Report) , with an Earnings ESP of +600.0% and a Zacks Rank #1. The company is slated to report second-quarter earnings results on Jul 27.
Casella Waste Systems Inc. (CWST - Free Report) , with an Earnings ESP of +20.0% and a Zacks Rank #1. The company is slated to report second-quarter earnings results before the market opens on Jul 28.
Bristol-Myers Squibb Company (BMY - Free Report) , with an Earnings ESP of +1.49% and a Zacks Rank #1. The company’s second-quarter earnings release date is Jul 28.
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PayPal (PYPL) to Report Q2 Earnings: What's in the Cards?
PayPal Holdings, Inc. (PYPL - Free Report) is set to report second-quarter 2016 results on Jul 21. Last quarter, the payment company posted a positive surprise of 6.67%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
PayPal Holdings is a technology platform, which offers online payment solutions. These allow customers to pay and get paid, withdraw funds from their bank accounts and hold balances in their PayPal accounts in various currencies. Its payment platform includes PayPal, PayPal Credit, Venmo and Braintree products.
In the last reported first quarter, PayPal gave decent numbers with both revenues and earnings exceeding the Zacks Consensus Estimate driven by strong payment volumes and increasing customer accounts. The company’s active account base grew by 4.5 million, ending the year with 184 million active customer accounts.
PayPal is focusing on its core capabilities and is operating with greater flexibility for success in the digital payments space. Its foray into mobile payments with the Braintree acquisition and its One Touch system reflects the same. The company has also signed a few strategic agreements to expand the acceptance of PayPal payments system among new clients and businesses. These efforts will continue to drive the company’s top line in the upcoming quarter.
However, intensifying competition in the payments – especially mobile – space can be a headwind for the company.
Earnings Whispers?
Our proven model does not conclusively show that PayPal will beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here as you will see below.
Zacks ESP: The Most Accurate estimate stands at 28 cents, while the Zacks Consensus Estimate is pegged higher at 30 cents. Hence, the difference is -6.67%.
Zacks Rank: PayPal has a Zacks Rank #4 (Sell).
We caution against stocks with Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
PAYPAL HOLDINGS Price and EPS Surprise
PAYPAL HOLDINGS Price and EPS Surprise | PAYPAL HOLDINGS Quote
Stocks to Consider
Here are some companies, which you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Coeur Mining, Inc. (CDE - Free Report) , with an Earnings ESP of +600.0% and a Zacks Rank #1. The company is slated to report second-quarter earnings results on Jul 27.
Casella Waste Systems Inc. (CWST - Free Report) , with an Earnings ESP of +20.0% and a Zacks Rank #1. The company is slated to report second-quarter earnings results before the market opens on Jul 28.
Bristol-Myers Squibb Company (BMY - Free Report) , with an Earnings ESP of +1.49% and a Zacks Rank #1. The company’s second-quarter earnings release date is Jul 28.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>