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PayPal Q4 Earnings & Revenue In-Line, Payment Transactions Up 23%

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PayPal Holdings (PYPL - Free Report) just released its fourth quarter fiscal 2016 financial results, posting earnings, before non-recurring items, of 34 cents per share and revenues of $2.981 billion. Currently, PYPL is a #2 (Buy) on the Zacks Rank, and is down 1.81% to $40.75 per share in trading shortly after its earnings report was released.

Matched earnings estimates. The company posted earnings of 34 cents per share, matching the Zacks Consensus Estimate of 34 cents per share. This number excludes 2 cents from non-recurring items.

Matched revenue estimates. The company saw revenue figures of $2.981 billion, also matching our consensus estimate of $2.981 billion and gaining 17% year-over-year.

PayPal reported operating cash flow of $923 million, and GAAP operating margin of 15% for the quarter.

The company saw growth of 5.4 million active customer accounts, with 1.8 billion payment transactions, an increase of 23%. PayPal also reported $99 billion in total payment volume, up 22%.

Looking ahead, PayPal expects revenue to grow 14% in a range of $2.9 billion to $2.95 billion for the first quarter of fiscal 2017. GAAP earnings per diluted share are forecasted in the range of 31 cents to 33 cents.

"I'm pleased to report that PayPal ended 2016 with another strong quarter of financial results. We extended our industry leadership by generating 18 million active customer accounts, with greater engagement than ever before. We innovated across our merchant and consumer value propositions and extended our lead in mobile payments," said Dan Schulman, President and CEO of PayPal.

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

PayPal Holdings, Inc. Price, Consensus and EPS Surprise

PayPal Holdings, Inc. Price, Consensus and EPS Surprise | PayPal Holdings, Inc. 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.

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