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Paypal (PYPL) Reports Q3 Earnings: What Key Metrics Have to Say

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Paypal (PYPL - Free Report) reported $7.85 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 5.8%. EPS of $1.20 for the same period compares to $1.30 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $7.86 billion, representing a surprise of -0.20%. The company delivered an EPS surprise of +11.11%, with the consensus EPS estimate being $1.08.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

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): $422.64 billion versus the five-analyst average estimate of $421.32 billion.
  • Transaction take rate: 1.7% versus the five-analyst average estimate of 1.7%.
  • Transaction margin: 46.6% compared to the 44.5% average estimate based on four analysts.
  • Total take rate: 1.9% compared to the 1.9% average estimate based on four analysts.
  • Transaction expense rate: 0.9% versus 1% estimated by three analysts on average.
  • Transaction and Credit loss rate: 0.1% compared to the 0.1% average estimate based on two analysts.
  • Active accounts: 432 versus 430 estimated by two analysts on average.
  • Revenues from other value added services: $780 million compared to the $743.49 million average estimate based on seven analysts. The reported number represents a change of +2.1% year over year.
  • Transaction revenues: $7.07 billion versus $7.13 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +6.2% change.
View all Key Company Metrics for Paypal here>>>

Shares of Paypal have returned +7.1% over the past month versus the Zacks S&P 500 composite's +1.7% 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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