A sign is posted outside of the PayPal headquarters in San Jose, California.
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PayPal stock was tumbling after the payments company beat second-quarter earnings forecasts but offered below-consensus guidance.
PayPal reported an adjusted profit of $1.15 a share, beating forecasts for $1.13 on sales of $6.24 billion, missing analyst estimates for $6.27 billion. PayPal also said it would earn $1.07 a share in the third quarter, below estimates for $1.14, while sales guidance of $6.15 to $6.25 billion came in shy of expectations for $6.43
“3Q outlook will drive the narrative, with revenues guided ~3.5% below Street ests. and EPS ~6% below,” writes Jefferies analyst Trevor Williams.
PayPal highlighted the impact of eBay ‘s transition to a “managed payments” system as one source of slower growth. TPV growth was 40% with eBay, 48% without out, while sales grew at a 32% clip without eBay versus 19% with.
Still, that wasn’t enough for the stock market. Shares of PayPal were off 5.8% to $284.50 at 4:58 p.m. in after-hours trading.
Write to Ben Levisohn at [email protected]
