Paypal (PYPL) Q4 Earnings Preview: What You Should Know Beyond the Headline Estimates

Core Viewpoint - Analysts project that Paypal (PYPL) will report quarterly earnings of $1.29 per share, an increase of 8.4% year over year, with revenues expected to reach $8.77 billion, up 4.8% from the same quarter last year [1]. Earnings Projections - The consensus EPS estimate has been revised downward by 2% over the past 30 days, indicating a collective reassessment by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3]. Key Metrics Estimates - Analysts estimate 'Net Revenues- Revenues from other value added services' to be $835.17 million, reflecting a 7.4% increase year over year [5]. - 'Net Revenues- Transaction revenues' are forecasted to reach $7.93 billion, indicating a 4.5% year-over-year change [5]. - 'Total Payment Volume (TPV)' is expected to be $468.32 billion, compared to $437.84 billion reported in the same quarter last year [6]. - The consensus estimate for 'Transaction margin' is 46.3%, down from 47.0% a year ago [6]. - Analysts predict 'Active accounts' will reach 440, up from 434 in the same quarter last year [7]. - The expected 'Number of payment transactions' is 6,607, slightly down from 6,619 reported in the same quarter last year [7]. Market Performance - Shares of Paypal have decreased by 7.4% in the past month, contrasting with a 0.8% increase in the Zacks S&P 500 composite [7]. - With a Zacks Rank of 4 (Sell), PYPL is anticipated to underperform the overall market in the near future [7].