Digital payments platform PayPal (NASDAQ: PYPL) will be reporting earnings this Tuesday morning. Here’s what to look for.
PayPal beat analysts’ revenue expectations last quarter, reporting revenues of $8.35 billion, up 7.2% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
Is PayPal a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting PayPal’s revenue to grow 2.2% year on year, slowing from the 5.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. PayPal has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at PayPal’s peers in the financial services segment, only WEX has reported results so far. It exceeded analysts’ revenue estimates, delivering year-on-year sales growth of 14.2%. The stock traded up 10.1% on the results.
Read our full analysis of WEX’s earnings results here.There has been positive sentiment among investors in the financial services segment, with share prices up 5.4% on average over the last month. PayPal is up 26.4% during the same time and is heading into earnings with an average analyst price target of $53.07 (compared to the current share price of $56.07).
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