PayPal Earnings Seen Pressured by Lower Transaction Margins

Earnings
โดย GuruFocus·Read original
Summary · why it matters

PayPal is expected to report second-quarter results on Tuesday before the market opens, with analysts forecasting revenue of $8.47 billion, up 2% from a year earlier, and earnings of $1.28 a share, a decrease of 8.6%. Total payment volume is projected to reach $473.02 billion, compared with $463.96 billion in the first quarter and $443.55 billion a year ago. Transaction margin is expected to decline to 44.17% from 45.61% in the prior quarter and 46.38% a year ago, while branded checkout growth may slow amid competition from Apple Pay and Shop Pay, weaker German consumer demand, and reduced European travel spending. Investors may also focus on takeover speculation, as Stripe and Advent International are believed to have bid $60.50 a share for PayPal, valuing the company at more than $53 billion, though the board reportedly considered the bid too low and raised financial and regulatory concerns.

Impact on stocks 2

Digital Finance & Tokenization▼ · 1 stocks
PayPal Holdings Inc
PYPL
▼ NegativeDemandrelevance

Lower transaction margins, weaker German consumer demand, reduced European travel spending, and competition from Apple Pay and Shop Pay

Artificial Intelligence▲ · 1 stocks

Off-coverage companies 2

Advent InternationalPrivate± Mixed
Capitalrelevance

Advent International reportedly bid $60.50/share for PayPal, but bid considered too low

Stripe, Inc.Private± Mixed
Capitalrelevance

Stripe reportedly bid $60.50/share for PayPal, but bid considered too low

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