Analysts on Wall Street project that Paypal (PYPL) will announce quarterly earnings of $1.30 per share in its forthcoming report, representing an increase of 9.2% year over year. Revenues are projected to reach $8.1 billion, increasing 2.7% from the same quarter last year.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.4% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Given this perspective, it's time to examine the average forecasts of specific Paypal metrics that are routinely monitored and predicted by Wall Street analysts.
It is projected by analysts that the 'Revenues from other value added services' will reach $766.91 million. The estimate suggests a change of +4.8% year over year.
The collective assessment of analysts points to an estimated 'Transaction revenues' of $7.31 billion. The estimate points to a change of +2.1% from the year-ago quarter.
Analysts' assessment points toward 'Transaction margin' reaching 46.7%. The estimate is in contrast to the year-ago figure of 45.8%.
The consensus estimate for 'Total Payment Volume (TPV)' stands at $434.45 billion. The estimate compares to the year-ago value of $416.81 billion.
The combined assessment of analysts suggests that 'Active accounts' will likely reach 438 . The estimate compares to the year-ago value of 429 .
The average prediction of analysts places 'Number of payment transactions' at 6,722 . Compared to the present estimate, the company reported 6,580 in the same quarter last year.
View all Key Company Metrics for Paypal here>>>
Over the past month, Paypal shares have recorded returns of +4.9% versus the Zacks S&P 500 composite's +5.7% change. Based on its Zacks Rank #2 (Buy), PYPL will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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PayPal Holdings, Inc. (PYPL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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