Wall Street analysts forecast that Paypal (PYPL) will report quarterly earnings of $1.15 per share in its upcoming release, pointing to a year-over-year decline of 17.9%. It is anticipated that revenues will amount to $7.83 billion, exhibiting an increase of 1.6% compared to the year-ago quarter.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.9% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
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 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.
The combined assessment of analysts suggests that 'Revenues from other value added services' will likely reach $667.22 million. The estimate indicates a change of +0.3% from the prior-year quarter.
Analysts' assessment points toward 'Transaction revenues' reaching $7.17 billion. The estimate indicates a year-over-year change of +1.9%.
Based on the collective assessment of analysts, 'Total Payment Volume (TPV)' should arrive at $420.67 billion. Compared to the present estimate, the company reported $403.86 billion in the same quarter last year.
It is projected by analysts that the 'Transaction margin' will reach 46.5%. Compared to the current estimate, the company reported 45% in the same quarter of the previous year.
Analysts predict that the 'Active accounts' will reach 435. The estimate compares to the year-ago value of 427.
According to the collective judgment of analysts, 'Number of payment transactions' should come in at 6,676. The estimate compares to the year-ago value of 6,505.
View all Key Company Metrics for Paypal here>>>
Shares of Paypal have experienced a change of -10.7% in the past month compared to the -5.1% move of the Zacks S&P 500 composite. 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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