Shares of PayPal Holdings (PYPL -10.35%) slumped out of the gate Thursday, falling as much as 11.4%. As of 11:51 a.m. ET, the stock was still down 11.3%.The catalyst that sent the fintech company lower was its quarterly financial report. While the results edged past expectations, its guidance sent a shiver through investors.A stalled turnaround?For the fourth quarter, PayPal generated net revenue that climbed 9% to $8 billion. This resulted in adjusted earnings per share (EPS) of $1.48, up 19%.To put this i ...

PayPal Holdings, Inc. (PYPL) reported non-GAAP earnings of $1.48 per share for fourth-quarter 2023, which beat the Zacks Consensus Estimate by 8.8%. The figure improved 19% on a year-over-year basis.Net revenues of $8.03 billion exhibited year-over-year growth of 9% on an FX-neutral basis, as well as on a reported basis. The figure surpassed the Zacks Consensus Estimate of $7.88 billion.Growing transaction and other value-added services’ revenues drove top-line growth year over year in the reported quarter. ...

PayPal (NASDAQ:PYPL) stock is sinking 9% as of this writing after the firm estimated that its profit would be flat this year compared with 2023. This news is troubling some investors and has spurred Morgan Stanley to cut its price target on PYPL stock. A number of other analysts have also lowered their price targets on PayPal shares in response.For 2024, PayPal expects to generate earnings per share, excluding some items, of $5.10. That’s unchanged from the EPS the company reported for 2023. New PayPal CEO ...

PayPal Holdings Inc. hit the reset button once again, and its shares were tumbling in Thursday’s premarket trading as some on Wall Street continued to express skepticism about the ease of the company’s turnaround. Despite “bold efforts” by management in the middle of the quarter “to rejuvenate a story which many investors had abandoned,” Wells Fargo analyst Andrew Bauch said that PayPal’s PYPL, -0.74% latest results and outlook were “more likely to vindicate the perma-bears and leave the want-to-be-bulls in ...

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

Key TakeawaysPayPal shares fell after the digital payments company issued weaker-than-expected guidance for the first quarter and full year amid a company transformation.The company posted fourth-quarter earnings that surpassed analysts' expectations due to a strong holiday season.The PayPal share price may find support around $46.50 from the lower trendline of a descending channel if a deeper earnings retracement occurs over the coming weeks. PayPal Holdings, Inc. Source: TradingView.com.Shares in digit ...

Financial Data and Key Metrics Changes - In Q4 2023, PayPal reported a 9% revenue growth on $8 billion, with total payment volume (TPV) of $410 billion, representing a 15% growth at spot and 13% growth on a currency-neutral basis [6][27][30] - Non-GAAP earnings per share increased by 19% year-over-year to $1.48 in Q4, and for the full year, it rose 24% to $5.10 [7][28] - Transaction margin dollars were flat year-over-year in Q4 and declined 1% for the full year, with transaction take rate decreasing by 10 basis points to 1.78% in Q4 [27][33][36] Business Line Data and Key Metrics Changes - Global branded checkout volumes grew approximately 5% on a currency-neutral basis in Q4, with full-year growth at 6% [30][31] - PSP processing volumes grew 29% in Q4, driven by Braintree's performance [31] - Other value-added services revenue grew 9% in Q4 to $743 million, with full-year growth of 26% primarily due to increased interest income on customer stored balances [32] Market Data and Key Metrics Changes - U.S. TPV grew 11% in Q4, while international TPV grew 17% on a currency-neutral basis, mainly driven by strength in Europe and improvements in Asia [30][32] - Monthly active accounts increased by 1% for both the quarter and the full year, with total active accounts at 426 million [28][29] Company Strategy and Development Direction - The company is focused on reshaping commerce and enhancing customer experience through a new leadership team and organizational structure [6][9] - Key strategic priorities for 2024 include accelerating growth in branded checkout, improving profitability, and unlocking data value [11][12] - The company plans to reduce its global workforce by approximately 9% to enhance operational efficiency [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the foundation being set for future growth, emphasizing the importance of execution in 2024 [6][12] - The company anticipates a relatively consistent macroeconomic environment with some interest rate declines, expecting non-GAAP EPS for 2024 to be roughly in line with the prior year [40][41] Other Important Information - PayPal will include stock-based compensation in its non-GAAP results starting in Q1 2024, aiming for greater transparency [39][70] - The company is committed to maintaining an investment-grade credit rating and plans to allocate approximately 70% to 80% of its free cash flow to share buybacks [41] Q&A Session Summary Question: Outlook for transaction margin dollars - Management acknowledged the significant changes within the company and identified three levers for transaction margin growth: branded experience, unbranded processing, and value-added services [43][45][46] Question: Branded TPV growth trends - Management indicated that branded checkout performance was consistent, with expectations for continued growth in 2024, focusing on improving consumer value propositions [50][51][52] Question: Measuring success of new initiatives - Management emphasized the importance of execution before incorporating new initiatives into guidance, with a focus on improving customer engagement and transaction margins [55][56][58] Question: Pricing strategy in Braintree - Management highlighted a shift towards a price-to-value conversation with merchants, focusing on profitable growth and higher-margin opportunities [60][62] Question: Balancing cost control and growth - Management confirmed the ability to manage expenses while investing in growth, emphasizing the need for ongoing efficiency improvements [64][65] Question: Impact of regulatory changes in Europe - Management is closely monitoring regulatory changes and is prepared to deliver omnichannel solutions for customers [73][74]

Slowing growth. A churning of inactive accounts.A slew of puts and takes dominated PayPal’s earnings Wednesday (Feb. 7), and a number of flat metrics sent investors headed, at least initially, for the exits in after-hours trading.The stock was down 7% Wednesday evening.Revenue rose 9% to $8 billion in the quarter, as calculated in constant currency.As detailed in the supplemental materials, active accounts were down 2% year over year, and were down 0.6% sequentially, to a recent 426 million. Management attr ...

Paypal (PYPL) reported $8.03 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 8.7%. EPS of $1.48 for the same period compares to $1.24 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $7.88 billion, representing a surprise of +1.81%. The company delivered an EPS surprise of +8.82%, with the consensus EPS estimate being $1.36.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

Paypal (PYPL) came out with quarterly earnings of $1.48 per share, beating the Zacks Consensus Estimate of $1.36 per share. This compares to earnings of $1.24 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.82%. A quarter ago, it was expected that this technology platform and digital payments company would post earnings of $1.22 per share when it actually produced earnings of $1.30, delivering a surprise of 6.56%.Over the la ...