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Countdown to Paypal (PYPL) Q1 Earnings: Wall Street Forecasts for Key Metrics

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The upcoming report from Paypal (PYPL - Free Report) is expected to reveal quarterly earnings of $1.27 per share, indicating a decline of 4.5% compared to the year-ago period. Analysts forecast revenues of $8.12 billion, representing an increase of 4.2% year over year.

The consensus EPS estimate for the quarter has been revised 2.2% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

Given this perspective, it's time to examine the average forecasts of specific Paypal metrics that are routinely monitored and predicted by Wall Street analysts.

The combined assessment of analysts suggests that 'Net Revenues- Revenues from other value added services' will likely reach $783.59 million. The estimate indicates a year-over-year change of +1.1%.

Analysts expect 'Net Revenues- Transaction revenues' to come in at $7.31 billion. The estimate indicates a year-over-year change of +4.2%.

It is projected by analysts that the 'Total Payment Volume (TPV)' will reach $447.88 billion. Compared to the current estimate, the company reported $417.21 billion in the same quarter of the previous year.

Analysts forecast 'Transaction margin' to reach 45.9%. The estimate compares to the year-ago value of 47.7%.

The consensus among analysts is that 'Active accounts' will reach 440 . Compared to the present estimate, the company reported 436 in the same quarter last year.

The average prediction of analysts places 'Number of payment transactions' at 6,317 . The estimate compares to the year-ago value of 6,045 .

According to the collective judgment of analysts, 'Payment transactions per active account' should come in at 36 . The estimate is in contrast to the year-ago figure of 59 .

View all Key Company Metrics for Paypal here>>>

Shares of Paypal have experienced a change of +14.1% in the past month compared to the +12.2% move of the Zacks S&P 500 composite. With a Zacks Rank #2 (Buy), PYPL is expected to outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

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