Earnings Outlook For PayPal Holdings

PayPal Holdings PYPL is gearing up to announce its quarterly earnings on Tuesday, 2024-10-29. Here's a quick overview of what investors should know before the release.

Analysts are estimating that PayPal Holdings will report an earnings per share (EPS) of $1.06.

PayPal Holdings bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings Track Record

The company's EPS beat by $0.30 in the last quarter, leading to a 2.78% increase in the share price on the following day.

Here's a look at PayPal Holdings's past performance and the resulting price change:

PayPal Holdings Share Price Analysis

Shares of PayPal Holdings were trading at $81.7 as of October 25. Over the last 52-week period, shares are up 60.48%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analysts' Perspectives on PayPal Holdings

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on PayPal Holdings.

Analysts have given PayPal Holdings a total of 25 ratings, with the consensus rating being Outperform. The average one-year price target is $81.04, indicating a potential 0.81% downside.

Understanding Analyst Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Fiserv, Fidelity National Info and Block, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Outperform trajectory for Fiserv, with an average 1-year price target of $211.05, indicating a potential 158.32% upside.
• The consensus outlook from analysts is an Outperform trajectory for Fidelity National Info, with an average 1-year price target of $88.31, indicating a potential 8.09% upside.
• For Block, analysts project an Outperform trajectory, with an average 1-year price target of $84.2, indicating a potential 3.06% upside.

Peer Analysis Summary

The peer analysis summary outlines pivotal metrics for Fiserv, Fidelity National Info and Block, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

PayPal Holdings ranks highest in Revenue Growth among its peers. It also leads in Gross Profit margin. However, it has a lower Return on Equity compared to one of its peers. Overall, PayPal Holdings is positioned favorably compared to its peers in the analysis.

Discovering PayPal Holdings: A Closer Look

PayPal was spun off from eBay in 2015 and provides electronic payment solutions to merchants and consumers, with a focus on online transactions. The company had 426 million active accounts at the end of 2023. The company also owns Venmo, a person-to-person payment platform.

Financial Insights: PayPal Holdings

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: PayPal Holdings's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 8.21%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Net Margin: PayPal Holdings's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 14.31%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 5.46%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): PayPal Holdings's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 1.35%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.47.

To track all earnings releases for PayPal Holdings visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.