PayPal Holdings Inc. (NASDAQ: PYPL) is currently in the headlines due to the current surge of 24% in the PYPL stock price. The company also reported its Q3 2023 financial results during the start of November and the upcoming date for the Quarter 4 is near.
It is expected to be released at the end of this month. That has sparked confidence and excitement in the investors expecting positive earnings in the upcoming quarter.
Q3 Earnings Highlights and Q4 Forecast
The company gave a solid financial performance during the 3rd quarter of fiscal 2023. The Total Payment Volume was reported to be $387 billion, which showed a growth of 15% when compared with the same quarter of the last financial year.
The company made a net revenue of $7.4 billion growing 8% Year on year. (The growth in the financial number above is calculated upon the FX-neutral basis, eliminating the effect of foreign exchange volatility). During this quarter, the company also generated a free cash flow of $1.1 billion, which further strengthened PayPal’s balance sheet.
Forecasted Quarter 4 Revenue and EPS
| Amount in millions of USD unless mentioned otherwise | ||||
| Quarter name | Revenue | Sales Growth | EPS | EPS Growth |
| Q4 2024 | $6,806 | -$0.29 | ||
| Q1 2023 | $6,846 | 0.59% | $1.15 | -496.55% |
| Q2 2023 | $7,040 | 2.83% | $0.80 | -30.43% |
| Q3 2023 | $7,287 | 3.51% | $0.70 | -12.50% |
| Q4 2023 | $7,383 | 1.32% | $0.92 | 31.43% |
| Q1 2024 | $7,418 | 0.47% | $0.93 | 1.09% |
| Q2 2024 Forecast | $7,585 | 2.25% | $0.61 | -34.42% |
Forecast Method: Mean of Linear Regression and Average Growth
The analyst’s forecast suggests a positive revenue growth while a negative Earnings per share growth in the upcoming quarter 4 results, These forecasts are subjective to the systematic and unsystematic risks during the forecast period.
Technical Analysis of PYPL Stock Price
At the press time, the PYPL stock price is trading at $60.1 after taking a bow from the immediate resistance level of $63.1. The bulls however took support from the level of $57.2. Moreover, the 50-day EMA is at $59.3 which the bullish investors are present as it is showing good support to the PYPL stock price. Collectively, the price prediction is bullish. The target price as per the current technical analysis is $83.4.
Conclusion
PayPal Holdings Inc. (NASDAQ: PYPL) has shown great results, both financially and technically. The forecasted values show a positive revenue growth in the upcoming quarter of this 2023 fiscal year. Meanwhile, the technical analysis also suggested a bullish move in the coming days for PYPL stock.
Technical levels
Support levels: $57.2 and $50.5
Resistance levels: $63.1 and $72.7
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading stocks comes with a risk of financial loss.
Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.
Source: https://www.thecoinrepublic.com/2024/01/06/pypl-stock-q4-earnings-forecast-and-technical-analysis/