PayPal Stock: PayPal Earnings Tops Views But Raised 2023 Outlook Disappoints

PayPal Holdings (PYPL) on Monday reported first-quarter earnings, revenue and total payment volume that topped views. But PayPal stock dipped as analysts mulled the size of the company’s raised 2023 outlook.




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For the quarter ended March 31, PayPal earnings rose 33% from a year earlier to $1.17. The digital payments company said revenue climbed 9% to $7.04 billion.

Analysts expected PayPal earnings of $1.10 a share on revenue of $6.98 billion. A year earlier, PayPal earned 88 cents a share on sales of $6.48 billion.

Meanwhile, PayPal updated its 2023 earnings outlook. The company predicted adjusted earnings growth of about 20% to $4.95 a share. Its earlier view called for 18% growth to about $4.87.

PayPal stock dipped 3.1% to near 73 in extended trading on the stock market today.

PayPal Stock: Total Payment Volume Up

San Jose, Calif.-based PayPal has evolved from an online checkout site to a mobile shopping and person-to-person payments site. Competition has heated up with Square-parent Block (SQ) and others.

Total payment volume processed from merchant customers climbed 10% to $354.5 billion. Analysts had projected total payment volume of $344.8 billion.

After plunging 62% last year, PayPal stock has advanced 5% thus far in 2023 heading into the earnings report.

Meanwhile, the company announced a $15 billion share buyback program in August.

In addition, PayPal in January announced plans to cut 2,000 jobs, or about 7% of its workforce.

PayPal stock has retreated from an all-time high of 310.16 on July 26, 2021. Shares hold a Relative Strength Rating of only 43 out of a best-possible 99, according to IBD Stock Checkup

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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Source: https://www.investors.com/news/technology/paypal-stock-paypal-earnings-pypl-stock-q12023/?src=A00220&yptr=yahoo