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What Analyst Projections for Key Metrics Reveal About Paypal (PYPL) Q3 Earnings

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The upcoming report from Paypal (PYPL - Free Report) is expected to reveal quarterly earnings of $1.08 per share, indicating a decline of 16.9% compared to the year-ago period. Analysts forecast revenues of $7.86 billion, representing an increase of 5.9% year over year.

The consensus EPS estimate for the quarter has been revised 1.2% 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.

With that in mind, let's delve into the average projections of some Paypal metrics that are commonly tracked and projected by analysts on Wall Street.

Analysts' assessment points toward 'Revenues from other value added services' reaching $743.49 million. The estimate indicates a year-over-year change of -2.7%.

Analysts expect 'Transaction revenues' to come in at $7.13 billion. The estimate indicates a year-over-year change of +7.1%.

According to the collective judgment of analysts, 'Total Payment Volume (TPV)' should come in at $421.32 billion. The estimate is in contrast to the year-ago figure of $387.70 billion.

The consensus among analysts is that 'Transaction margin' will reach 44.5%. Compared to the present estimate, the company reported 45.4% in the same quarter last year.

The collective assessment of analysts points to an estimated 'Active accounts' of 430. Compared to the present estimate, the company reported 428 in the same quarter last year.

View all Key Company Metrics for Paypal here>>>

Paypal shares have witnessed a change of +4.5% in the past month, in contrast to the Zacks S&P 500 composite's +1.5% move. With a Zacks Rank #3 (Hold), PYPL is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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