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PayPal (PYPL) to Post Q4 Earnings: What's in the Offing?
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PayPal Holdings, Inc. (PYPL - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 7.
For the fourth quarter, the company projects year-over-year revenue growth of 6-7% on a spot rate basis and 7-8% on a currency-neutral basis. The Zacks Consensus Estimate for revenues is pegged at $7.88 billion, indicating an improvement of 6.8% from the prior-year quarter’s reported figure.
PayPal projects non-GAAP earnings at $1.36 per share, suggesting growth of 10% on a year-over-year basis. The Zacks Consensus Estimate for earnings is pegged at $1.36 per share, indicating growth of 9.7% from the year-ago reported figure.
The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while matching the same once, delivering an earnings surprise of 4.1%, on average.
The impacts of PayPal’s robust product portfolio are anticipated to get reflected in its fourth-quarter results.
The growing adoption of the company’s buy now pay later (“BNPL”) solution is anticipated to have contributed well.
Strong monetization of Venmo is likely to have continued aiding its adoption rate in the to-be-reported quarter.
Robust PayPal Checkout experiences and solid momentum in core peer-to-peer payments are expected to have benefited the upcoming results.
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.
Key Metrics to Consider
All these factors are expected to have aided growth in the company’s financial metrics during the fourth quarter.
However, the challenging macroeconomic scenario might have hurt consumers’ spending patterns, which, in turn, is expected to have been a major concern for the company.
For the fourth quarter, the Zacks Consensus Estimate for active customer accounts is pegged at 433 million, suggesting a 0.5% fall from the year-ago quarter’s reported figure.
The consensus mark for payment transactions per active user is pinned at 56 million, suggesting growth of 9.8% from the year-ago quarter’s reported figure.
The consensus estimate for the total number of payment transactions is pegged at 6.7 billion, indicating an improvement of 11.2% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for TPV is pegged at $403.53 billion, suggesting growth of 12.9% on a year-over-year basis.
What Our Model Says
Our proven model does not conclusively predict 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. That’s not the case here, as you will see below.
PayPal has an Earnings ESP of -0.59%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PYPL carries a Zacks Rank #3.
Stocks to Consider
Here are some companies worth considering from the same space, as our model shows that these have the right combination of elements to beat on earnings in the soon-to-be-reported quarterly results.
BlackLine is scheduled to release fourth-quarter 2023 results on Feb 13. The Zacks Consensus Estimate for BL’s earnings is pegged at 55 cents per share, suggesting a jump of 57.1% from the prior-year quarter.
Expedia Group (EXPE - Free Report) currently has an Earnings ESP of +5.00% and a Zacks Rank #3.
Expedia Group is set to announce fourth-quarter 2023 results on Feb 8. The Zacks Consensus Estimate for EXPE’s earnings is pinned at $1.67 per share, suggesting a rise of 32.5% from the year-ago quarter.
Twilio (TWLO - Free Report) has an Earnings ESP of +31.37% and a Zacks Rank #2 at present.
Twilo is set to announce fourth-quarter 2023 results on Feb 14. The Zacks Consensus Estimate for TWLO’s earnings is pinned at 57 cents per share, indicating growth from the year-ago quarter’s reported figure of 22 cents per share.
Image: Bigstock
PayPal (PYPL) to Post Q4 Earnings: What's in the Offing?
PayPal Holdings, Inc. (PYPL - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 7.
For the fourth quarter, the company projects year-over-year revenue growth of 6-7% on a spot rate basis and 7-8% on a currency-neutral basis. The Zacks Consensus Estimate for revenues is pegged at $7.88 billion, indicating an improvement of 6.8% from the prior-year quarter’s reported figure.
PayPal projects non-GAAP earnings at $1.36 per share, suggesting growth of 10% on a year-over-year basis. The Zacks Consensus Estimate for earnings is pegged at $1.36 per share, indicating growth of 9.7% from the year-ago reported figure.
The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while matching the same once, delivering an earnings surprise of 4.1%, 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 are anticipated to get reflected in its fourth-quarter results.
The growing adoption of the company’s buy now pay later (“BNPL”) solution is anticipated to have contributed well.
Strong monetization of Venmo is likely to have continued aiding its adoption rate in the to-be-reported quarter.
Robust PayPal Checkout experiences and solid momentum in core peer-to-peer payments are expected to have benefited the upcoming results.
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.
Key Metrics to Consider
All these factors are expected to have aided growth in the company’s financial metrics during the fourth quarter.
However, the challenging macroeconomic scenario might have hurt consumers’ spending patterns, which, in turn, is expected to have been a major concern for the company.
For the fourth quarter, the Zacks Consensus Estimate for active customer accounts is pegged at 433 million, suggesting a 0.5% fall from the year-ago quarter’s reported figure.
The consensus mark for payment transactions per active user is pinned at 56 million, suggesting growth of 9.8% from the year-ago quarter’s reported figure.
The consensus estimate for the total number of payment transactions is pegged at 6.7 billion, indicating an improvement of 11.2% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for TPV is pegged at $403.53 billion, suggesting growth of 12.9% on a year-over-year basis.
What Our Model Says
Our proven model does not conclusively predict 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. That’s not the case here, as you will see below.
PayPal has an Earnings ESP of -0.59%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PYPL carries a Zacks Rank #3.
Stocks to Consider
Here are some companies worth considering from the same space, as our model shows that these have the right combination of elements to beat on earnings in the soon-to-be-reported quarterly results.
BlackLine (BL - Free Report) has an Earnings ESP of +2.62% and sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
BlackLine is scheduled to release fourth-quarter 2023 results on Feb 13. The Zacks Consensus Estimate for BL’s earnings is pegged at 55 cents per share, suggesting a jump of 57.1% from the prior-year quarter.
Expedia Group (EXPE - Free Report) currently has an Earnings ESP of +5.00% and a Zacks Rank #3.
Expedia Group is set to announce fourth-quarter 2023 results on Feb 8. The Zacks Consensus Estimate for EXPE’s earnings is pinned at $1.67 per share, suggesting a rise of 32.5% from the year-ago quarter.
Twilio (TWLO - Free Report) has an Earnings ESP of +31.37% and a Zacks Rank #2 at present.
Twilo is set to announce fourth-quarter 2023 results on Feb 14. The Zacks Consensus Estimate for TWLO’s earnings is pinned at 57 cents per share, indicating growth from the year-ago quarter’s reported figure of 22 cents per share.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.