PayPal Raises 2016 Revenue Guidance; PayPal And Visa Enter Partnership

(RTTNews) - PayPal Holdings, Inc. (PYPL) raised its full year 2016 revenue guidance to a range of $10.750 to $10.850 billion. PayPal expects non-GAAP earnings per share in the range of $1.47 - $1.50. In April, the company projected 2016 adjusted earnings of $1.45 to $1.50 per share and revenues of $10.5 billion to $10.7 billion.

For the third quarter 2016, PayPal expects revenue to grow 16% - 18% at current spot rates and 19% - 21% on an FX-neutral basis, to a range of $2.62 to $2.67 billion. PayPal expects non-GAAP earnings per share in the range of $0.33 - $0.35.

For the second-quarter, the company reported revenue growth of 15% to $2.650 billion, or 19% on a foreign currency neutral (FX-neutral) basis. Revenue growth on a non-GAAP pro forma basis was 16%, or 19% on a non-GAAP pro forma FX-neutral basis. GAAP earnings per share growth increased 7% to $0.27, while non-GAAP EPS rose 11% on a pro forma basis to $0.36.

Separately, PayPal and Visa announced a strategic partnership to expand their long-standing relationship that will result in an improved and more seamless shopping experience and greater choice in how consumers pay. PayPal will gain access to Visa's tokenization services, starting in the United States, for in-store PayPal transactions. This will expand acceptance for PayPal's digital wallet to all physical retail locations where Visa contactless transactions are enabled. The company said the partnership's benefits will include greater accessibility and volumes for Visa payment instruments in the PayPal digital wallet.