Digital payments platform PayPal (NASDAQ:PYPL) will be reporting results this Tuesday before market hours. Here’s what to look for.
PayPal beat analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $8.29 billion, up 5.1% year on year. It was a strong quarter for the company, with and .
Is PayPal a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting PayPal’s revenue to grow 5% year on year to $8.24 billion, in line with the 5.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.20 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PayPal has missed Wall Street’s revenue estimates twice over the last two years.
Looking at PayPal’s peers in the financial services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Euronet Worldwide delivered year-on-year revenue growth of 4.2%, missing analysts’ expectations by 4.5%, and Western Union reported flat revenue, topping estimates by 1%. Euronet Worldwide traded down 5.9% following the results while Western Union was up 10.1%.
Read our full analysis of Euronet Worldwide’s results here and Western Union’s results here.
Investors in the financial services segment have had fairly steady hands going into earnings, with share prices down 1% on average over the last month. PayPal’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $81.75 (compared to the current share price of $69.80).
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