Back to top

Image: Bigstock

PayPal Gains on Earnings Beat, Mobile Payment Volume Up 56%

Read MoreHide Full Article

PayPal Holdings Inc. (PYPL - Free Report) just released its third quarter fiscal 2016 financial results, posting earnings of 29 cents per share (accounting for non-stock based compensation and before non-recurring items) and revenue of $2.667 billion. PYPL is a Zacks Rank #4 (Sell), and is up 2.89% to $41.26 per share in after-hours trading shortly after its earnings report was released.

Beat earnings estimates. The company reported earnings of 29 cents per share, surpassing the Zacks Consensus Estimate of 27 cents per share. This number excludes 2 cents from non-recurring items.

Beat revenue estimates. The company saw revenue figures of $2.667 billion, just edging past our consensus estimate of $2.651 billion and growing 18% year-over-year, or 21% on a foreign currency neutral basis.

PayPal processed nearly $26 billion in mobile payment volume, up 56%, representing 29% of its total payment volume (TPV) for the quarter. Venmo, the company's social payments platform, processed $4.9 billion of TPV, up 131%.

The company reported a total of 192 million active customer accounts, up 11% with growth of 19 million active customer accounts. 1.5 billion transactions were processed during Q3, up 24%.

PayPal expects full year 2016 revenue in the range of $10.780 billion to $10.850 billion, and for the fourth quarter, the company forecasts revenue to grow 14% - 17% at current spot rates, and non-GAAP earnings per diluted share in the range of 40 cents to 42 cents.

“We are pleased to have delivered another quarter of strong results. The opportunities for PayPal to grow and gain share have never been greater…We are further expanding the ubiquity and value of the PayPal brand and moving deliberately towards achieving our vision of becoming an everyday, essential financial service for people around the world," said Dan Schulman, President and CEO of PayPal.

Here’s a graph that looks at PayPal’s price, consensus, and EPS surprise over the past year:

PAYPAL HOLDINGS Price, Consensus and EPS Surprise

PAYPAL HOLDINGS Price, Consensus and EPS Surprise | PAYPAL HOLDINGS Quote

PayPal Holdings, Inc. is a technology platform company. The Company offers online payment solution which allows customers to pay and get paid, withdraw funds to their bank accounts and hold balances in their PayPal accounts in various currencies. It payment platform includes PayPal, PayPal Credit, Venmo and Braintree products. PayPal Holdings, Inc. is based in San Jose, California.

Stocks that Aren't in the News…Yet

You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015, with a stellar average gain of +26% per year. See these high-potential stocks now >>


See More Zacks Research for These Tickers


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


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