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PayPal (PYPL) to Post Q1 Earnings: What's in the Offing?
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PayPal Holdings, Inc. (PYPL - Free Report) is scheduled to report first-quarter 2022 results on Apr 27.
The company projects first-quarter year-over-year revenues growth of 6% on a current spot rate and a currency-neutral basis. The Zacks Consensus Estimate for revenues is pegged at $6.42 billion, indicating an improvement of 6.4% from the prior-year quarter’s reported figure.
PayPal projects non-GAAP earnings of 87 cents per share. The Zacks Consensus Estimate for earnings is pegged at 89 per share, suggesting a decline of 27.05% from the year-ago reported figure.
Notably, the company surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, delivering an earnings surprise of 6.35%, on average.
The impacts of PayPal’s robust product portfolio, including One Touch and Venmo, are anticipated to get reflected in first-quarter results.
Strong monetization efforts of Venmo are likely to have aided its adoption rate in the to-be-reported quarter.
Robust PayPal Checkout experiences are expected to have sustained the company’s momentum in the to-be-reported quarter.
PayPal is expected to have gained from the growing proliferation of online payment transactions in the first quarter amid the pandemic.
Strengthening user engagements on PayPal’s platform, owing to shifting customer preference toward contactless payments amid the coronavirus pandemic, are expected to have accelerated the company’s payment volume in the to-be-reported quarter.
It is anticipated to have accelerated growth of the company’s net new active accounts in the quarter under review.
Upswing in Key Metrics
Total payment volume (TPV), active customer accounts, payment transactions per active account and the total number of payment transactions are considered to be the key metrics for analyzing PayPal’s business growth.
For the first quarter, the Zacks Consensus Estimate for active customer accounts is pegged at 431 million, suggesting a 9.9% rise from the year-ago quarter’s reported figure.
The consensus mark for payment transactions per active user is pegged at 47.02 million, suggesting growth of 11.4% from the year-ago quarter’s reported figure.
The consensus estimate for the total number of payment transactions is pegged at 5.03 billion, indicating an improvement of 15.2% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for TPV is pegged at $319.95 billion, suggesting growth of 12.1% on a year-over-year basis.
What Our Model Says
Our proven model conclusively predicts an earnings beat for PayPal this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PayPal has an Earnings ESP of +1.83% and a Zacks Rank #3.
Other Stocks to Consider
Here are some other stocks that you may consider, as our model shows that these too have the right combination of elements to beat on earnings this season.
Analog Devices is scheduled to release second-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.12 per share, suggesting an increase of 37.7% from the prior-year reported figure.
Cisco Systems (CSCO - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank #2 at present. Cisco Systems is set to report third-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 86 cents per share, which suggests an increase of 3.61% from the prior-year reported figure.
HP (HPQ - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank #3 at present. HP is scheduled to release second-quarter fiscal 2022 results on May 26. The Zacks Consensus Estimate for HPQ’s earnings is pegged at $1.06 per share, which suggests an increase of 13.98% from the prior-year reported figure.
Image: Bigstock
PayPal (PYPL) to Post Q1 Earnings: What's in the Offing?
PayPal Holdings, Inc. (PYPL - Free Report) is scheduled to report first-quarter 2022 results on Apr 27.
The company projects first-quarter year-over-year revenues growth of 6% on a current spot rate and a currency-neutral basis. The Zacks Consensus Estimate for revenues is pegged at $6.42 billion, indicating an improvement of 6.4% from the prior-year quarter’s reported figure.
PayPal projects non-GAAP earnings of 87 cents per share. The Zacks Consensus Estimate for earnings is pegged at 89 per share, suggesting a decline of 27.05% from the year-ago reported figure.
Notably, the company surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, delivering an earnings surprise of 6.35%, on average.
PayPal Holdings, Inc. Price and EPS Surprise
PayPal Holdings, Inc. price-eps-surprise | PayPal Holdings, Inc. Quote
Factors to Note
The impacts of PayPal’s robust product portfolio, including One Touch and Venmo, are anticipated to get reflected in first-quarter results.
Strong monetization efforts of Venmo are likely to have aided its adoption rate in the to-be-reported quarter.
Robust PayPal Checkout experiences are expected to have sustained the company’s momentum in the to-be-reported quarter.
PayPal is expected to have gained from the growing proliferation of online payment transactions in the first quarter amid the pandemic.
Strengthening user engagements on PayPal’s platform, owing to shifting customer preference toward contactless payments amid the coronavirus pandemic, are expected to have accelerated the company’s payment volume in the to-be-reported quarter.
It is anticipated to have accelerated growth of the company’s net new active accounts in the quarter under review.
Upswing in Key Metrics
Total payment volume (TPV), active customer accounts, payment transactions per active account and the total number of payment transactions are considered to be the key metrics for analyzing PayPal’s business growth.
For the first quarter, the Zacks Consensus Estimate for active customer accounts is pegged at 431 million, suggesting a 9.9% rise from the year-ago quarter’s reported figure.
The consensus mark for payment transactions per active user is pegged at 47.02 million, suggesting growth of 11.4% from the year-ago quarter’s reported figure.
The consensus estimate for the total number of payment transactions is pegged at 5.03 billion, indicating an improvement of 15.2% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for TPV is pegged at $319.95 billion, suggesting growth of 12.1% on a year-over-year basis.
What Our Model Says
Our proven model conclusively predicts an earnings beat for PayPal this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PayPal has an Earnings ESP of +1.83% and a Zacks Rank #3.
Other Stocks to Consider
Here are some other stocks that you may consider, as our model shows that these too have the right combination of elements to beat on earnings this season.
Analog Devices (ADI - Free Report) has an Earnings ESP of +2.17% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Analog Devices is scheduled to release second-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.12 per share, suggesting an increase of 37.7% from the prior-year reported figure.
Cisco Systems (CSCO - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank #2 at present. Cisco Systems is set to report third-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 86 cents per share, which suggests an increase of 3.61% from the prior-year reported figure.
HP (HPQ - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank #3 at present. HP is scheduled to release second-quarter fiscal 2022 results on May 26. The Zacks Consensus Estimate for HPQ’s earnings is pegged at $1.06 per share, which suggests an increase of 13.98% from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.