PayPal and Visa Earnings: A Closer Look

Core Insights - The earnings season is progressing positively, with major banks setting a strong tone and other companies following suit [1] - Visa and PayPal are significant players reporting next week, with expectations remaining stable [6] Visa - Visa is expected to see an 18% increase in earnings and an 11% rise in sales, reflecting strong investor confidence [2] - Total Payments Volume (TPV) grew 8% year-over-year, indicating healthy consumer spending despite macroeconomic uncertainties [3] - The current forward 12-month earnings multiple for Visa is 28.2X, which is above its five-year median of 26.9X, suggesting shares are relatively expensive [4][13] PayPal - PayPal is projected to achieve 9% EPS growth and a 2.7% increase in sales, with sales growth expected to accelerate [7] - PayPal's TPV reached $417 billion, a 3% increase year-over-year, with a consensus estimate of $434.4 billion for the next period [11] - The current forward 12-month earnings multiple for PayPal is 14.3X, reflecting a 37% discount compared to the S&P 500 [12][14]