PayPal Earnings, Revenue Edge By Views As Analysts Pine For CEO News
PayPal Holdings (PYPL) on Wednesday reported June-quarter earnings and revenue that edged by estimates. The company's September-quarter profit outlook for PYPL stock also narrowly beat views as analysts await the announcement of a new chief executive.
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Reporting after the close, PayPal said earnings for the second quarter ended June 30 were $1.16 a share, up nearly 24% from a year earlier. The digital payments company said revenue climbed 7% to $7.3 billion.
Analysts expected PayPal earnings of $1.15 a share on revenue of $7.27 billion. A year earlier, PayPal earned 93 cents a share on sales of $6.8 billion. For the September quarter, PayPal predicted earnings of $1.23 a share at the mid-point of guidance. Analysts had called for earnings of $1.21 a share.
PayPal stock fell 6.5% to 68.40 in extended trading on the stock market today.
"We believe the most acute issue with the print will be the 7% year-over-year decline in transactional gross profit, which missed Street estimates by 5%," Jefferies analyst Trevor Williams said in a note to clients.
Total payment volume processed from merchant customers in the quarter climbed 11% to $376.5 billion. Analysts had projected total payment volume of $368.9 billion.
PayPal Stock: Search For New CEO
Current CEO Dan Schulman plans to retire at the end of 2023. Schulman will continue to serve on the PayPal board of directors after he exits as CEO.
In opening comments on PayPal's earnings call with analysts, Schulman said: "We are in the very final stages of the process with several outstanding candidates, all of whom are highly qualified and excited to lead PayPal as we go into our next chapter of growth."
San Jose, Calif.-based PayPal has evolved from an online checkout site to a mobile shopping and person-to-person payments site. Meanwhile, competition has heated up with Square-parent Block (SQ) and others.
Further, after plunging 62% in 2022, PayPal stock has advanced 2% thus far in 2023 heading into the PayPal earnings report.
PYPL stock has retreated from an all-time high of 310.16, reached on July 26, 2021. Shares hold a Relative Strength Rating of only 25 out of a best-possible 99, according to IBD Stock Checkup.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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Source: Investor's Business Daily
