PayPal Sees Growth In Q2 Adj. EPS, Lifts FY24 View; Stock Up In Pre-market - Update

(RTTNews) - PayPal Holdings, Inc. (PYPL), while reporting higher first-quarter results, on Tuesday issued second-quarter outlook, and lifted fiscal 2024 earnings view.

In pre-market activity on the Nasdaq, PayPal shares were gaining around 6.4 percent to trade at $71.26.

For the second quarter, the company expects earnings per share to be $0.83, compared to $0.92 in the prior year period. The prior year result included a positive impact of around $0.09 from PayPal's strategic investment portfolio.

Adjusted earnings per share are expected to increase by a low double-digit percentage compared to $0.87 in the prior year period.

Net revenues are expected to increase approximately 6.5 percent and 7 percent FXN.

For fiscal 2024, PayPal projects earnings per share to be approximately $3.65, compared to $3.84 in the prior year.

Adjusted earnings per share are expected to increase by a mid to high single-digit percentage compared to $3.83 in the prior year, based on the new non-GAAP methodology.

The company previously expected earnings per share to be around $3.60, and adjusted earnings per share to be in line with the prior year

Analysts on average expect the company to report earnings of $1.13 per share for the second quarter and $4.75 per share for fiscal 2024, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

In its first quarter, PayPal reported a profit for its first quarter that increased from the same period last year but missed the Street estimates.

The company's bottom line totaled $888 million, or $0.83 per share. This compares with $795 million, or $0.70 per share, in last year's first quarter.

Adjusted earnings were $1.16 billion or $1.08 per share for the period. Analysts had expected the company to earn $1.14 per share.

The company's revenue for the quarter rose 9.4 percent to $7.70 billion from $7.04 billion last year.

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