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PayPal (PYPL) to Post Q2 Earnings: What's in the Offing?
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PayPal Holdings, Inc. (PYPL - Free Report) is scheduled to report second-quarter 2020 results on Jul 29.
For second quarter, PayPal expects revenues to reflect year-over-year improvement in the range of 13% at current spot rate and 15% at FX-neutral basis. The Zacks Consensus Estimate for revenues is pegged at $4.95 billion, indicating an improvement of 14.9% from the prior-year quarter.
The company anticipates non-GAAP earnings to improvein the range of 15-20%.The Zacks Consensus Estimate for earnings stands at 84 cents per share, suggesting a decline of 2.3% from the year-ago reported figure.
Notably, the company surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once. It has a trailing four-quarter earnings surprise of 5.9%, on average.
Factors to Note
PayPal’s robust product portfolio including One Touch, Xoom and Venmo is anticipated to get reflected in second-quarter results.
Further, strengthening user engagements on the company’s platform owing to shifting customer preference toward contactless payments amid the coronavirus pandemic might have accelerated the company’s payments volume in the to-be-reported quarter.
Moreover, it is likely to have accelerated growth of the company’s net new active accounts during the second quarter.
Additionally, solid momentum in P2P courtesy of its innovative and advanced products and services may have driven the abovementioned metrics. Also, rising in-store digital payments are expected to have benefited the company’s P2P payments volume in the quarter to be reported.
Furthermore, increasing e-commerce spending amid this pandemic is anticipated to have bolstered the company’s branded payment experience in the second quarter.
However, sluggish revenue generation from travel and ticketing vertical due to coronavirus led shelter-in-place protocol might get reflected in the company’s second-quarter results.
Total payment volume (TPV), active customer accounts, payment transactions per active account and total number of payment transactions are considered to be the key metrics for analyzing PayPal’s business growth.
For the second quarter, the Zacks Consensus Estimate for active customer accounts is pegged at 341 million, up 19.2% from the year-ago quarter.
The consensus mark for payment transactions per active user is pegged at 38.89 million, suggesting a decline of 0.3% from the year-ago quarter.
Further, the consensus estimates for total number of payment transactions stands at 3.6 billion, indicating an improvement of 20% from the prior-year quarter.
Furthermore, the Zacks Consensus Estimate for TPV is pegged at $209.3 billion, suggesting growth of 21.4% on a year-over-year basis.
What Our Model Says
Our proven model conclusively predicts an earnings beat for PayPal this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PayPal has an Earnings ESP of +3.96% and a Zacks Rank #3.
Other Stocks to Consider
Here are some other stocks you may consider, as our proven model shows that thesetoo have the right combination of elements to post an earnings beat this quarter.
Wayfair, Inc. (W - Free Report) has an Earnings ESP of +43.47% and a Zacks Rank of 2.
Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +10.98% and a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
PayPal (PYPL) to Post Q2 Earnings: What's in the Offing?
PayPal Holdings, Inc. (PYPL - Free Report) is scheduled to report second-quarter 2020 results on Jul 29.
For second quarter, PayPal expects revenues to reflect year-over-year improvement in the range of 13% at current spot rate and 15% at FX-neutral basis. The Zacks Consensus Estimate for revenues is pegged at $4.95 billion, indicating an improvement of 14.9% from the prior-year quarter.
The company anticipates non-GAAP earnings to improvein the range of 15-20%.The Zacks Consensus Estimate for earnings stands at 84 cents per share, suggesting a decline of 2.3% from the year-ago reported figure.
Notably, the company surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once. It has a trailing four-quarter earnings surprise of 5.9%, on average.
Factors to Note
PayPal’s robust product portfolio including One Touch, Xoom and Venmo is anticipated to get reflected in second-quarter results.
Further, strengthening user engagements on the company’s platform owing to shifting customer preference toward contactless payments amid the coronavirus pandemic might have accelerated the company’s payments volume in the to-be-reported quarter.
Moreover, it is likely to have accelerated growth of the company’s net new active accounts during the second quarter.
Additionally, solid momentum in P2P courtesy of its innovative and advanced products and services may have driven the abovementioned metrics. Also, rising in-store digital payments are expected to have benefited the company’s P2P payments volume in the quarter to be reported.
Furthermore, increasing e-commerce spending amid this pandemic is anticipated to have bolstered the company’s branded payment experience in the second quarter.
However, sluggish revenue generation from travel and ticketing vertical due to coronavirus led shelter-in-place protocol might get reflected in the company’s second-quarter results.
PayPal Holdings, Inc. Price and EPS Surprise
PayPal Holdings, Inc. price-eps-surprise | PayPal Holdings, Inc. Quote
Key Metrics to Consider
Total payment volume (TPV), active customer accounts, payment transactions per active account and total number of payment transactions are considered to be the key metrics for analyzing PayPal’s business growth.
For the second quarter, the Zacks Consensus Estimate for active customer accounts is pegged at 341 million, up 19.2% from the year-ago quarter.
The consensus mark for payment transactions per active user is pegged at 38.89 million, suggesting a decline of 0.3% from the year-ago quarter.
Further, the consensus estimates for total number of payment transactions stands at 3.6 billion, indicating an improvement of 20% from the prior-year quarter.
Furthermore, the Zacks Consensus Estimate for TPV is pegged at $209.3 billion, suggesting growth of 21.4% on a year-over-year basis.
What Our Model Says
Our proven model conclusively predicts an earnings beat for PayPal this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PayPal has an Earnings ESP of +3.96% and a Zacks Rank #3.
Other Stocks to Consider
Here are some other stocks you may consider, as our proven model shows that thesetoo have the right combination of elements to post an earnings beat this quarter.
JD.com, Inc. (JD - Free Report) has an Earnings ESP of +13.79% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Wayfair, Inc. (W - Free Report) has an Earnings ESP of +43.47% and a Zacks Rank of 2.
Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +10.98% and a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>