PayPal Takes a Hit After Beating Earnings Estimates - 04 noiembrie 2022
Shares in PayPal Holdings Inc. were down as much as 13% in aftermarket trading on Thursday after the company released a third-quarter earnings report that included cuts to its revenue outlook. PayPal generated adjusted per-share earnings of $1.08 on net revenue of $6.85 billion. Both were above Wall Street estimates, according to analysts polled by FactSet. PayPal also announced the repurchase of $939 million of stock and closer ties with Apple that could benefit PayPal and Venmo merchants and consumers.
But it was PayPal's forecast about its future business that likely drew investors' attention. The company said it expected full-year revenue for 2022 to increase around 8.5%. When the company first gave 2022 guidance last November, it told investors to expect around 18% revenue growth. It steadily revised that forecast lower in each following quarter.
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