Back to top

Image: Bigstock

Compared to Estimates, Paypal (PYPL) Q4 Earnings: A Look at Key Metrics

Read MoreHide Full Article

Paypal (PYPL - Free Report) reported $8.03 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 8.7%. EPS of $1.48 for the same period compares to $1.24 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $7.88 billion, representing a surprise of +1.81%. The company delivered an EPS surprise of +8.82%, with the consensus EPS estimate being $1.36.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Paypal performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Transaction margin: 45.8% versus the 10-analyst average estimate of 45.8%.
  • Total Payment Volume (TPV): $409.83 billion versus $403.53 billion estimated by nine analysts on average.
  • Total take rate: 2% versus 2% estimated by eight analysts on average.
  • Active accounts: 426 versus 433 estimated by seven analysts on average.
  • Transaction take rate: 1.8% versus the seven-analyst average estimate of 1.8%.
  • Transaction expense rate: 1% versus 1% estimated by six analysts on average.
  • Transaction and Credit loss rate: 0.1% compared to the 0.1% average estimate based on six analysts.
  • Number of payment transactions: 6,798 compared to the 6,705 average estimate based on six analysts.
  • U.S. net revenues: $4.64 billion versus $4.45 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +8% change.
  • International net revenues: $3.39 billion versus the two-analyst average estimate of $3.45 billion. The reported number represents a year-over-year change of +9.7%.
  • Revenues from other value added services: $743 million versus $778.34 million estimated by 12 analysts on average. Compared to the year-ago quarter, this number represents a +9.1% change.
  • Transaction revenues: $7.28 billion versus $7.11 billion estimated by 12 analysts on average. Compared to the year-ago quarter, this number represents a +8.7% change.
View all Key Company Metrics for Paypal here>>>

Shares of Paypal have returned +4.4% over the past month versus the Zacks S&P 500 composite's +5.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


PayPal Holdings, Inc. (PYPL) - free report >>

Published in