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PayPal (PYPL) to Post Q3 Earnings: What's in the Offing?
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PayPal Holdings, Inc. (PYPL - Free Report) is scheduled to report third-quarter 2021 results on Nov 8.
The company projects third-quarter revenues between $6.15 billion and $6.25 billion, with year-over-year growth of 13-14% at a current spot rate. The Zacks Consensus Estimate for revenues is pegged at $6.2 billion, indicating an improvement of 13.9% from the prior-year quarter’s reported figure.
The company projects non-GAAP earnings at $1.07 per share. The Zacks Consensus Estimate for earnings is pegged at $1.08 per share, suggesting growth of 0.9% from the year-ago reported figure.
Notably, the company surpassed the Zacks Consensus Estimate in all the trailing four quarters. It has a trailing four-quarter earnings surprise of 11.1%, on average.
PayPal’s robust product portfolio, including One Touch and Venmo, is anticipated to get reflected in third-quarter results.
Strong monetization efforts of Venmo are likely to have aided its adoption rate in the to-be-reported quarter.
Robust merchant services and PayPal Checkout experiences are expected to have sustained the company’s momentum in the to-be-reported quarter.
PayPal is expected to have gained from the growing proliferation of online payment transactions in the third quarter amid the pandemic.
Strengthening user engagements on PayPal’s platform, owing to shifting customer preference toward contactless payments amid the coronavirus pandemic, are expected to have accelerated the company’s payment volume in the to-be-reported quarter.
It is anticipated to have accelerated growth of the company’s net new active accounts in the quarter under review.
Solid momentum in P2P, courtesy of its innovative and advanced products and services, is expected to have driven the above-mentioned metrics. Also, rising in-store digital payments are anticipated to have benefited the company’s P2P payment volume in the quarter to be reported.
However, the impacts of intensifying competition in the digital payment market and foreign exchange headwinds are expected to get reflected in the upcoming results.
Key Metrics to Consider
Total payment volume (TPV), active customer accounts, payment transactions per active account and the total number of payment transactions are considered to be the key metrics for analyzing PayPal’s business growth.
For the third quarter, the Zacks Consensus Estimate for active customer accounts is pegged at 417 million, up 15.5% from the year-ago quarter’s reported figure.
The consensus mark for payment transactions per active user is pegged at 44.16 million, suggesting growth of 10.1% from the year-ago quarter’s reported figure.
The consensus estimate for the total number of payment transactions is pegged at 4.9 billion, indicating an improvement of 22.9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for TPV is pegged at $314.7 billion, suggesting growth of 27.6% on a year-over-year basis.
What Our Model Says
Our proven model does not conclusively predict 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. But that’s not the case here. 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 -0.74% and a Zacks Rank #4.
Stocks to Consider
Here are some stocks you may consider, as our proven model shows that these have the right combination of elements to post a beat this earnings season.
Image: Bigstock
PayPal (PYPL) to Post Q3 Earnings: What's in the Offing?
PayPal Holdings, Inc. (PYPL - Free Report) is scheduled to report third-quarter 2021 results on Nov 8.
The company projects third-quarter revenues between $6.15 billion and $6.25 billion, with year-over-year growth of 13-14% at a current spot rate. The Zacks Consensus Estimate for revenues is pegged at $6.2 billion, indicating an improvement of 13.9% from the prior-year quarter’s reported figure.
The company projects non-GAAP earnings at $1.07 per share. The Zacks Consensus Estimate for earnings is pegged at $1.08 per share, suggesting growth of 0.9% from the year-ago reported figure.
Notably, the company surpassed the Zacks Consensus Estimate in all the trailing four quarters. It has a trailing four-quarter earnings surprise of 11.1%, on average.
PayPal Holdings, Inc. Price and EPS Surprise
PayPal Holdings, Inc. price-eps-surprise | PayPal Holdings, Inc. Quote
Factors to Note
PayPal’s robust product portfolio, including One Touch and Venmo, is anticipated to get reflected in third-quarter results.
Strong monetization efforts of Venmo are likely to have aided its adoption rate in the to-be-reported quarter.
Robust merchant services and PayPal Checkout experiences are expected to have sustained the company’s momentum in the to-be-reported quarter.
PayPal is expected to have gained from the growing proliferation of online payment transactions in the third quarter amid the pandemic.
Strengthening user engagements on PayPal’s platform, owing to shifting customer preference toward contactless payments amid the coronavirus pandemic, are expected to have accelerated the company’s payment volume in the to-be-reported quarter.
It is anticipated to have accelerated growth of the company’s net new active accounts in the quarter under review.
Solid momentum in P2P, courtesy of its innovative and advanced products and services, is expected to have driven the above-mentioned metrics. Also, rising in-store digital payments are anticipated to have benefited the company’s P2P payment volume in the quarter to be reported.
However, the impacts of intensifying competition in the digital payment market and foreign exchange headwinds are expected to get reflected in the upcoming results.
Key Metrics to Consider
Total payment volume (TPV), active customer accounts, payment transactions per active account and the total number of payment transactions are considered to be the key metrics for analyzing PayPal’s business growth.
For the third quarter, the Zacks Consensus Estimate for active customer accounts is pegged at 417 million, up 15.5% from the year-ago quarter’s reported figure.
The consensus mark for payment transactions per active user is pegged at 44.16 million, suggesting growth of 10.1% from the year-ago quarter’s reported figure.
The consensus estimate for the total number of payment transactions is pegged at 4.9 billion, indicating an improvement of 22.9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for TPV is pegged at $314.7 billion, suggesting growth of 27.6% on a year-over-year basis.
What Our Model Says
Our proven model does not conclusively predict 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. But that’s not the case here. 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 -0.74% and a Zacks Rank #4.
Stocks to Consider
Here are some stocks you may consider, as our proven model shows that these have the right combination of elements to post a beat this earnings season.
Applied Materials (AMAT - Free Report) has an Earnings ESP of +0.52% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
HP Inc. (HPQ - Free Report) has an Earnings ESP of +1.89% and a Zacks Rank of 2, at present.
NetApp, Inc. (NTAP - Free Report) has an Earnings ESP of +3.70% and a Zacks Rank of 3, at present.