Back to top

Image: Bigstock

Seeking Clues to Paypal (PYPL) Q4 Earnings? A Peek Into Wall Street Projections for Key Metrics

Read MoreHide Full Article

In its upcoming report, Paypal (PYPL - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.36 per share, reflecting an increase of 9.7% compared to the same period last year. Revenues are forecasted to be $7.88 billion, representing a year-over-year increase of 6.8%.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.4% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

Given this perspective, it's time to examine the average forecasts of specific Paypal metrics that are routinely monitored and predicted by Wall Street analysts.

Analysts' assessment points toward 'Revenues from other value added services' reaching $778.34 million. The estimate indicates a year-over-year change of +14.3%.

The combined assessment of analysts suggests that 'Transaction revenues' will likely reach $7.11 billion. The estimate suggests a change of +6.1% year over year.

Based on the collective assessment of analysts, 'U.S. net revenues' should arrive at $4.45 billion. The estimate suggests a change of +3.7% year over year.

The consensus among analysts is that 'International net revenues' will reach $3.45 billion. The estimate suggests a change of +11.6% year over year.

Analysts forecast 'Transaction margin' to reach 45.8%. The estimate compares to the year-ago value of 49.7%.

The average prediction of analysts places 'Total Payment Volume (TPV)' at $403.53 billion. The estimate is in contrast to the year-ago figure of $357.38 billion.

According to the collective judgment of analysts, 'Active accounts' should come in at 433. The estimate compares to the year-ago value of 435.

Analysts predict that the 'Number of payment transactions' will reach 6,705. Compared to the current estimate, the company reported 6,032 in the same quarter of the previous year.

Analysts expect 'Total Payment Volume - International TPV' to come in at $145.10 billion. Compared to the present estimate, the company reported $124.83 billion in the same quarter last year.

The collective assessment of analysts points to an estimated 'Total Payment Volume - US TPV' of $253.98 billion. Compared to the current estimate, the company reported $232.55 billion in the same quarter of the previous year.

The consensus estimate for 'Payment transactions per active account' stands at 56. Compared to the current estimate, the company reported 51 in the same quarter of the previous year.

View all Key Company Metrics for Paypal here>>>

Paypal shares have witnessed a change of +6.1% in the past month, in contrast to the Zacks S&P 500 composite's +2.9% move. With a Zacks Rank #3 (Hold), PYPL is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


PayPal Holdings, Inc. (PYPL) - free report >>

Published in