Paypal (PYPL) Q4 Earnings and Revenues Beat Estimates

Group 1 - Paypal reported quarterly earnings of $1.19 per share, exceeding the Zacks Consensus Estimate of $1.13 per share, but down from $1.48 per share a year ago, representing an earnings surprise of 5.31% [1] - The company posted revenues of $8.37 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.67% and up from $8.03 billion year-over-year [2] - Over the last four quarters, Paypal has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Group 2 - The stock's immediate price movement will depend on management's commentary on the earnings call and the sustainability of earnings expectations [3][4] - Paypal shares have increased approximately 4.9% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] - The current consensus EPS estimate for the coming quarter is $1.11 on revenues of $7.97 billion, and for the current fiscal year, it is $4.91 on revenues of $33.07 billion [7] Group 3 - The Zacks Industry Rank places the Internet - Software sector in the top 27% of over 250 Zacks industries, indicating a favorable outlook for stocks in this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current estimate revisions trend for Paypal is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it will perform in line with the market in the near future [6]