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For the second quarter, the company projects year-over-year revenue growth of 6.5-7% on a spot rate basis and 7.5-8% on a currency-neutral basis. The Zacks Consensus Estimate for revenues is pegged at $7.26 billion, indicating an improvement of 6.6% from the prior-year quarter’s reported figure.
PayPal projects non-GAAP earnings between $1.15 and $1.17 per share, suggesting growth of 24-26% on a year-over-year basis. The Zacks Consensus Estimate for earnings is pegged at $1.16 per share, suggesting growth of 24.7% from the year-ago reported figure.
The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 8.2%, on average.
The impacts of PayPal’s robust product portfolio, including Venmo, are anticipated to get reflected in its fourth-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.
Solid adoption of the company’s buy now pay later (BNPL) solution is anticipated to have contributed well.
Strengthening user engagements on PayPal’s platform, owing to a continuous shift in customer preference toward contactless payments, is expected to have accelerated the company’s payment volume in the to-be-reported quarter.
It is anticipated to have accelerated the company’s net new active accounts’ growth in the quarter under review.
Key Metrics to Consider
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 second quarter, the Zacks Consensus Estimate for active customer accounts is pegged at 435 million, suggesting a 1.4% rise from the year-ago quarter’s reported figure.
The consensus mark for payment transactions per active user is pinned at 55 million, suggesting growth of 12.9% from the year-ago quarter’s reported figure.
The consensus estimate for the total number of payment transactions is pegged at 6.18 billion, indicating an improvement of 12.1% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for TPV is pegged at $370.02 billion, suggesting growth of 8.9% on a year-over-year basis.
What Our Model Says
Our proven model 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 and that’s the case here, as you will see below.
PayPal has an Earnings ESP of +0.12%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PYPL currently carries a Zacks Rank #3.
Other Stocks to Consider
Here are some other stocks that you may consider, as our model shows that they too have the right combination of elements to beat on earnings this season.
Itron is scheduled to release second-quarter 2023 results on Aug 3. The Zacks Consensus Estimate for ITRI’s earnings is pegged at 31 cents per share, suggesting a jump from the prior-year quarter’s reported figure of 7 cents.
CACI International (CACI - Free Report) has an Earnings ESP of +2.36% and a Zacks Rank #2.
CACI is set to report its fourth-quarter fiscal 2023 results on Aug 9. The Zacks Consensus Estimate for CACI’s earnings is pegged at $4.85 per share, suggesting growth of 6.8% from the prior-year quarter’s reported figure.
Docebo (DCBO - Free Report) has an Earnings ESP of +6.67% and a Zacks Rank #3 at present.
Docebo is set to report its second-quarter fiscal 2023 results on Aug 10. The Zacks Consensus Estimate for DCBO’s earnings is pegged at 8 cents per share. The company reported a loss of 5 cents per share in the year-ago quarter.
Image: Bigstock
PayPal (PYPL) to Post Q2 Earnings: What's in the Offing?
PayPal Holdings, Inc. (PYPL - Free Report) is scheduled to report second-quarter 2023 results on Aug 2.
For the second quarter, the company projects year-over-year revenue growth of 6.5-7% on a spot rate basis and 7.5-8% on a currency-neutral basis. The Zacks Consensus Estimate for revenues is pegged at $7.26 billion, indicating an improvement of 6.6% from the prior-year quarter’s reported figure.
PayPal projects non-GAAP earnings between $1.15 and $1.17 per share, suggesting growth of 24-26% on a year-over-year basis. The Zacks Consensus Estimate for earnings is pegged at $1.16 per share, suggesting growth of 24.7% from the year-ago reported figure.
The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 8.2%, 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 Venmo, are anticipated to get reflected in its fourth-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.
Solid adoption of the company’s buy now pay later (BNPL) solution is anticipated to have contributed well.
Strengthening user engagements on PayPal’s platform, owing to a continuous shift in customer preference toward contactless payments, is expected to have accelerated the company’s payment volume in the to-be-reported quarter.
It is anticipated to have accelerated the company’s net new active accounts’ growth in the quarter under review.
Key Metrics to Consider
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 second quarter, the Zacks Consensus Estimate for active customer accounts is pegged at 435 million, suggesting a 1.4% rise from the year-ago quarter’s reported figure.
The consensus mark for payment transactions per active user is pinned at 55 million, suggesting growth of 12.9% from the year-ago quarter’s reported figure.
The consensus estimate for the total number of payment transactions is pegged at 6.18 billion, indicating an improvement of 12.1% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for TPV is pegged at $370.02 billion, suggesting growth of 8.9% on a year-over-year basis.
What Our Model Says
Our proven model 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 and that’s the case here, as you will see below.
PayPal has an Earnings ESP of +0.12%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PYPL currently carries a Zacks Rank #3.
Other Stocks to Consider
Here are some other stocks that you may consider, as our model shows that they too have the right combination of elements to beat on earnings this season.
Itron (ITRI - Free Report) has an Earnings ESP of +7.61% and sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Itron is scheduled to release second-quarter 2023 results on Aug 3. The Zacks Consensus Estimate for ITRI’s earnings is pegged at 31 cents per share, suggesting a jump from the prior-year quarter’s reported figure of 7 cents.
CACI International (CACI - Free Report) has an Earnings ESP of +2.36% and a Zacks Rank #2.
CACI is set to report its fourth-quarter fiscal 2023 results on Aug 9. The Zacks Consensus Estimate for CACI’s earnings is pegged at $4.85 per share, suggesting growth of 6.8% from the prior-year quarter’s reported figure.
Docebo (DCBO - Free Report) has an Earnings ESP of +6.67% and a Zacks Rank #3 at present.
Docebo is set to report its second-quarter fiscal 2023 results on Aug 10. The Zacks Consensus Estimate for DCBO’s earnings is pegged at 8 cents per share. The company reported a loss of 5 cents per share in the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.