PayPal(PYPL) ZACKS·2025-01-28 16:05Core Viewpoint - The market anticipates a year-over-year decline in Paypal's earnings despite an increase in revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - Paypal is expected to report quarterly earnings of 8.22 billion, up 2.4% from the previous year [3]. - The earnings report is scheduled for release on February 4, 2025, and could lead to stock price increases if results exceed expectations [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.51% over the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +0.84% suggests that analysts have recently become more optimistic about Paypal's earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Paypal's current Zacks Rank is 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Paypal exceeded the expected earnings of 1.20, resulting in a surprise of +11.11% [12]. - Over the past four quarters, Paypal has consistently beaten consensus EPS estimates [13]. Industry Context - In the Zacks Internet - Software industry, AppFolio is expected to post earnings of 199.87 million, up 16.3% [17]. - AppFolio's consensus EPS estimate has been revised down by 2% in the last 30 days, resulting in a negative Earnings ESP of -1.84%, making it challenging to predict an earnings beat [18].