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Paypal (PYPL) Reports Q1 Earnings: What Key Metrics Have to Say
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Paypal (PYPL - Free Report) reported $7.7 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 9.4%. EPS of $1.40 for the same period compares to $1.17 a year ago.
The reported revenue represents a surprise of +2.59% over the Zacks Consensus Estimate of $7.5 billion. With the consensus EPS estimate being $1.20, the EPS surprise was +16.67%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Paypal performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total Payment Volume (TPV): $403.86 billion compared to the $394.05 billion average estimate based on six analysts.
Transaction margin: 45% versus the six-analyst average estimate of 43.9%.
Transaction take rate: 1.7% versus the six-analyst average estimate of 1.7%.
Transaction expense rate: 1% versus the four-analyst average estimate of 1%.
Active accounts: 427 versus the four-analyst average estimate of 427.
Total take rate: 1.9% versus 1.9% estimated by three analysts on average.
Number of payment transactions: 6,505 versus the three-analyst average estimate of 6,493.
Transaction and Credit loss rate: 0.1% compared to the 0.1% average estimate based on three analysts.
Revenues from other value added services: $665 million versus the eight-analyst average estimate of $711.39 million. The reported number represents a year-over-year change of -1.6%.
Transaction revenues: $7.03 billion versus the eight-analyst average estimate of $6.80 billion. The reported number represents a year-over-year change of +10.5%.
Shares of Paypal have returned +3% over the past month versus the Zacks S&P 500 composite's -2.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Paypal (PYPL) Reports Q1 Earnings: What Key Metrics Have to Say
Paypal (PYPL - Free Report) reported $7.7 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 9.4%. EPS of $1.40 for the same period compares to $1.17 a year ago.
The reported revenue represents a surprise of +2.59% over the Zacks Consensus Estimate of $7.5 billion. With the consensus EPS estimate being $1.20, the EPS surprise was +16.67%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Paypal performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Total Payment Volume (TPV): $403.86 billion compared to the $394.05 billion average estimate based on six analysts.
- Transaction margin: 45% versus the six-analyst average estimate of 43.9%.
- Transaction take rate: 1.7% versus the six-analyst average estimate of 1.7%.
- Transaction expense rate: 1% versus the four-analyst average estimate of 1%.
- Active accounts: 427 versus the four-analyst average estimate of 427.
- Total take rate: 1.9% versus 1.9% estimated by three analysts on average.
- Number of payment transactions: 6,505 versus the three-analyst average estimate of 6,493.
- Transaction and Credit loss rate: 0.1% compared to the 0.1% average estimate based on three analysts.
- Revenues from other value added services: $665 million versus the eight-analyst average estimate of $711.39 million. The reported number represents a year-over-year change of -1.6%.
- Transaction revenues: $7.03 billion versus the eight-analyst average estimate of $6.80 billion. The reported number represents a year-over-year change of +10.5%.
View all Key Company Metrics for Paypal here>>>Shares of Paypal have returned +3% over the past month versus the Zacks S&P 500 composite's -2.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.