PayPal Holdings (PYPL) reported fourth-quarter earnings that fell short of expectations while total payment volume also came in below estimates. PayPal stock plunged as 2022 profit guidance missed as well.
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San Jose, Calif.-based PayPal reported earnings late Tuesday. PYPL stock toppled 15.5% to near 148.50 in extended trading on the stock market today.
PayPal earnings for the quarter ended Dec. 31 were $1.11 per share, up 4% from a year earlier. The e-commerce company said revenue rose 13% to $6.90 billion, including acquisitions.
Analysts expected PayPal earnings of $1.12 a share on revenue of $6.90 billion. A year earlier, PayPal earned $1.08 a share on sales of $6.12 billion.
Total payment volume processed from merchant customers climbed 23% to $339.5 billion. Analysts had projected total payment volume of $345.40 billion.
PayPal Stock: 2022 Profit Guidance Misses
For 2022, PayPal forecast earnings per share in a range of $4.60 to $4.75 per share, roughly 10% below Wall Street estimates. Analysts had predicted full-year earnings of $5.22 a share.
In addition, PayPal lowered its 2022 net revenue growth outlook to 16% at the midpoint of guidance vs. its 18% or better outlook issued in November, Jefferies analyst Trevor Williams said in a report to clients.
Williams added: “PYPL only expects to add 15 million to 20 million net new (active monthly users) in 2022 vs. street estimates of 53 million, which likely stokes competitive concern.”
PayPal stock had retreated some 24% since its third-quarter earnings report.
Former parent eBay (EBAY), which spun off PayPal in 2015, is almost done shifting its payment processing from PayPal to Netherlands-based Adyen.
PYPL stock has pulled back from an all-time high of 310.16 on July 26. PayPal stock holds a Relative Strength Rating of only 19 out of a best-possible 99, according to IBD Stock Checkup.
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Source: https://www.investors.com/news/technology/paypal-stock-plunges-as-2022-profit-outlook-misses-estimates/?src=A00220&yptr=yahoo