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PayPal Rallies on Q1 Earnings Beat, Payment Transactions Up 23%

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PayPal Holdings Inc. (PYPL - Free Report) just released its first quarter fiscal 2017 financial results, posting earnings of 44 cents per share and revenues of $2.975 billion. PYPL is a #3 (Hold) on the Zacks Rank, and is up almost 7% to $47.50 per share in trading shortly after its earnings report was released.

Beat earnings estimates. The company reported earnings of 44 cents per share, surpassing the Zacks Consensus Estimate of 41 cents per share. This number excludes 12 cents from non-recurring items.

Beat revenue estimates. The company saw revenue figures of $2.975 billion, just edging past our consensus estimate of $2.934 billion and growing 17% year-over-year (or 19% on a currency-neutral basis).

PayPal reported 6 million active customer accounts were added during Q1, ending the quarter with 203 million active accounts, including 16 million merchant accounts.

The company posted 1.7 billion payment transactions, up 23% year-over-year, and $99 billion in total payment volume (TPV), up 23% year-over-year.

Looking ahead, PayPal has boosted its 2017 guidance, and now expects revenues to grow 15-17% on a currency-neutral basis to a range of $12.520-$12.720 billion. GAAP earnings per diluted share are estimated in the range of $1.28-$1.33, while non-GAAP earnings per diluted share are estimated in the range of $1.74-$1.79.

"With another quarter of strong financial results, we continue to deliver on our vision to democratize financial services for our consumers and drive the global transition from cash to digital payments," said Dan Schulman, President and CEO of PayPal. "We are deepening our merchant offerings and relationships, and expanding our network of strategic partnerships to make PayPal more available in new contexts and new markets."

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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