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Wall Street's Insights Into Key Metrics Ahead of Paypal (PYPL) Q2 Earnings

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The upcoming report from Paypal (PYPL - Free Report) is expected to reveal quarterly earnings of $0.96 per share, indicating a decline of 17.2% compared to the year-ago period. Analysts forecast revenues of $7.78 billion, representing an increase of 6.8% year over year.

The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

Bearing this in mind, let's now explore the average estimates of specific Paypal metrics that are commonly monitored and projected by Wall Street analysts.

The combined assessment of analysts suggests that 'Revenues from other value added services' will likely reach $720.45 million. The estimate indicates a change of -1.4% from the prior-year quarter.

It is projected by analysts that the 'Transaction revenues' will reach $7.06 billion. The estimate points to a change of +7.8% from the year-ago quarter.

The consensus estimate for 'Total Payment Volume (TPV)' stands at $419.54 billion. The estimate compares to the year-ago value of $376.54 billion.

Analysts predict that the 'Transaction margin' will reach 43.3%. Compared to the current estimate, the company reported 45.9% in the same quarter of the previous year.

The consensus among analysts is that 'Active accounts' will reach 428. Compared to the current estimate, the company reported 431 in the same quarter of the previous year.

Analysts expect 'Number of payment transactions' to come in at 6,908. Compared to the present estimate, the company reported 6,074 in the same quarter last year.

View all Key Company Metrics for Paypal here>>>

Shares of Paypal have demonstrated returns of -0.3% over the past month compared to the Zacks S&P 500 composite's -0.3% change. With a Zacks Rank #2 (Buy), PYPL is expected to beat the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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