In its upcoming report, Paypal (PYPL) is predicted by Wall Street analysts to post quarterly earnings of $1.19 per share, reflecting a decline of 0.8% compared to the same period last year. Revenues are forecasted to be $8.23 billion, representing a year-over-year increase of 4.8%.
Over the last 30 days, there has been a downward revision of 0.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
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 $825.09 million. The estimate indicates a change of +5.8% from the prior-year quarter.
The consensus estimate for 'Transaction revenues' stands at $7.44 billion. The estimate points to a change of +5.3% from the year-ago quarter.
The consensus among analysts is that 'Total Payment Volume (TPV)' will reach $448.94 billion. The estimate is in contrast to the year-ago figure of $422.64 billion.
According to the collective judgment of analysts, 'Transaction margin' should come in at 45.9%. The estimate compares to the year-ago value of 46.6%.
Analysts predict that the 'Active accounts' will reach 439 . The estimate is in contrast to the year-ago figure of 432 .
The combined assessment of analysts suggests that 'Number of payment transactions' will likely reach 6,543 . Compared to the current estimate, the company reported 6,631 in the same quarter of the previous year.
View all Key Company Metrics for Paypal here>>>
Shares of Paypal have demonstrated returns of +0.3% over the past month compared to the Zacks S&P 500 composite's +0.2% change. With a Zacks Rank #3 (Hold), PYPL is expected to mirror the overall market performance in the near future. 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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