PayPal Holdings (Nasdaq:Pipple) reported second-quarter sales of $7.89 billion, up 8% from the same period last year and beating analysts’ consensus estimates. $7.81 billion.
The company reported quarterly adjusted EPS of $1.19. The analyst consensus estimate is $0.98.After printing, the stock price rose.
Total payments for the quarter increased 11% year-over-year to $416.8 billion.
Payment transactions increased 8% to $6.6 billion, with payment transactions per active account up 11% over the past 12 months.
Total active accounts decreased 0.4% to 429 million. Quarter-over-quarter, active accounts increased 0.4% to 1.8 million.
Operating margin expanded 126 basis points to 16.8% and adjusted operating margin increased 231 basis points to $18.5 billion.
Operating cash flow was $1.5 billion and free cash flow was $1.4 billion. PayPal had $18.3 billion in cash and cash equivalents as of June 30, 2024.
“PayPal delivered strong performance in the second quarter and first half of the year and we believe we are on the right track: we achieved our highest transaction margin dollar growth since 2021 and we are making steady progress on our strategic transformation while investing in innovation and operating more efficiently,” CEO Alex Kris said.
Outlook: PayPal expects third-quarter revenue to grow at a mid-single-digit percentage rate, compared with $7.42 billion in the year-ago period and the consensus estimate of $7.81 billion.
The company now expects adjusted EPS to increase by a high-single-digit percentage compared to $0.98 in the year-ago period and the consensus estimate of $0.98.
PayPal expects its adjusted EPS to grow in the low teens for the full year 2024.Previously, the percentage was in the mid to high single digits.) compared to $3.83 in the same period last year. Current analyst forecasts EPS of $4.23 per share is expected.
PayPal Holdings Inc. shares have fallen more than 22% in the past 12 months, analysts say. Better than expected Venmo and PayPal digital wallets.
Price Trends: PYPL shares were up 5.99% as of last check on Tuesday, trading at $62.47 in pre-market trading.
Photo credit: PayPal
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This article Fintech giant PayPal’s second-quarter results: Revenue and EPS beat expectations, payments volume and transactions surge, and guidance improved Originally Benzinga
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