We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PayPal (PYPL) to Report Q2 Earnings: What's in the Offing?
Read MoreHide Full Article
PayPal Holdings, Inc. (PYPL - Free Report) is set to report second-quarter 2019 results on Jul 24.
The company surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average surprise being 7.60%.
In first-quarter 2019, the company reported earnings of 78 cents per share, recording a positive surprise of 16.42%. The figure also surged 37% on a year-over-year basis. Moreover, net revenues improved 12% year over year to $4.13 billion.
In the last reported quarter, PayPal’s strategy of geographic and product diversification, as well as acquisition benefits aided in top-line growth. Further, its Venmo monetization efforts and strength in the APAC business contributed well.
For second-quarter 2019, PayPal expects revenues between $4.3 billion and $4.34 billion. Non-GAAP earnings are anticipated within 68-70 cents per share.
Let’s analyze the factors that are likely to influence its second-quarter results.
PayPal’s robust product portfolio is expected to aid business growth in the to-be-reported quarter.
Venmo’s improving monetization efforts have been aiding the company in attracting new partners to its platform. This is likely to bolster its monthly active user base, which in turn is expected to aid payment volume growth in the to-be-reported quarter.
PayPal’s growing mobile initiatives have been strengthening customer engagement on its platform. One Touch, with strong checkout conversion rates, continues to aid its momentum among merchants and consumers.
The acquisition of Braintree remains a major positive. Positive contributions from this buyout are anticipated to accelerate the company’s transaction number in the to-be-reported quarter.
We believe all these factors are anticipated to bolster PayPal’s active customer accounts and total payment volume (TPV), which forms the basis of the company’s business, in the to-be-reported quarter.
Encouraging Projections
Active customer accounts and TPV are considered to be the key metrics for analyzing the company’s business growth.
For the second quarter, the Zacks Consensus Estimate for active customer accounts is pegged at 283 million, up 3.2% from the year-ago period. Further, the consensus estimate for TPV is $171.7 billion, suggesting an improvement of 17.6% from the year-ago reported figure.
PayPal is currently riding on strong momentum in international markets, especially in India and Japan. Further, its expanding marketplace relationships, strategic partnerships with global financial institutions and strengthening merchant base are tailwinds.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 or 5 (Sell rated) stocks are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PayPal currently has a Zacks Rank #3 and an Earnings ESP of +14.38%. This indicates that the company is likely to deliver a positive earnings surprise in the upcoming quarterly report.
Other Stocks That Warrant a Look
Here are some other stocks worth considering as our model shows that these too have the right combination of elements to deliver an earnings beat in the upcoming releases.
Facebook, Inc. has an Earnings ESP of +0.61% and a Zacks Rank #2.
Thermo Fisher Scientific Inc. (TMO - Free Report) has an Earnings ESP of +0.54% and holds a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
PayPal (PYPL) to Report Q2 Earnings: What's in the Offing?
PayPal Holdings, Inc. (PYPL - Free Report) is set to report second-quarter 2019 results on Jul 24.
The company surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average surprise being 7.60%.
In first-quarter 2019, the company reported earnings of 78 cents per share, recording a positive surprise of 16.42%. The figure also surged 37% on a year-over-year basis. Moreover, net revenues improved 12% year over year to $4.13 billion.
In the last reported quarter, PayPal’s strategy of geographic and product diversification, as well as acquisition benefits aided in top-line growth. Further, its Venmo monetization efforts and strength in the APAC business contributed well.
For second-quarter 2019, PayPal expects revenues between $4.3 billion and $4.34 billion. Non-GAAP earnings are anticipated within 68-70 cents per share.
Let’s analyze the factors that are likely to influence its second-quarter results.
PayPal Holdings, Inc. Price and EPS Surprise
PayPal Holdings, Inc. price-eps-surprise | PayPal Holdings, Inc. Quote
Portfolio Strength to Aid Growth
PayPal’s robust product portfolio is expected to aid business growth in the to-be-reported quarter.
Venmo’s improving monetization efforts have been aiding the company in attracting new partners to its platform. This is likely to bolster its monthly active user base, which in turn is expected to aid payment volume growth in the to-be-reported quarter.
PayPal’s growing mobile initiatives have been strengthening customer engagement on its platform. One Touch, with strong checkout conversion rates, continues to aid its momentum among merchants and consumers.
The acquisition of Braintree remains a major positive. Positive contributions from this buyout are anticipated to accelerate the company’s transaction number in the to-be-reported quarter.
We believe all these factors are anticipated to bolster PayPal’s active customer accounts and total payment volume (TPV), which forms the basis of the company’s business, in the to-be-reported quarter.
Encouraging Projections
Active customer accounts and TPV are considered to be the key metrics for analyzing the company’s business growth.
For the second quarter, the Zacks Consensus Estimate for active customer accounts is pegged at 283 million, up 3.2% from the year-ago period. Further, the consensus estimate for TPV is $171.7 billion, suggesting an improvement of 17.6% from the year-ago reported figure.
PayPal is currently riding on strong momentum in international markets, especially in India and Japan. Further, its expanding marketplace relationships, strategic partnerships with global financial institutions and strengthening merchant base are tailwinds.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 or 5 (Sell rated) stocks are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PayPal currently has a Zacks Rank #3 and an Earnings ESP of +14.38%. This indicates that the company is likely to deliver a positive earnings surprise in the upcoming quarterly report.
Other Stocks That Warrant a Look
Here are some other stocks worth considering as our model shows that these too have the right combination of elements to deliver an earnings beat in the upcoming releases.
Amazon.com, Inc. (AMZN - Free Report) has an Earnings ESP of +15.56% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Facebook, Inc. has an Earnings ESP of +0.61% and a Zacks Rank #2.
Thermo Fisher Scientific Inc. (TMO - Free Report) has an Earnings ESP of +0.54% and holds a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>