/PayPal%20Holdings%20Inc%20HQ%20photo-by%20bennymarty%20via%20iStock.jpg)
San Jose, California-based PayPal Holdings, Inc. (PYPL) is a financial technology company that enables digital payments on behalf of merchants and consumers. With a market cap of $85.1 billion, PayPal’s operations span various countries around the globe. The fintech giant is expected to announce its Q3 earnings before the market opens on Tuesday, Oct. 29.
Ahead of the event, analysts expect PayPal to report a profit of $1.08 per share, up 11.3% from $0.97 per share reported in the year-ago quarter. Moreover, the company has surpassed Wall Street’s earnings estimates in each of the past four quarters. Its adjusted EPS for the last reported surged 43.4% year-over-year to $1.19, exceeding the consensus estimates by 24%.
For fiscal 2024, analysts expect PayPal to report an adjusted EPS of $4.44, up 17.5% from $3.78 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to grow 10.4% year over year to $4.90.
PYPL stock prices have surged 32.5% on a YTD basis, substantially outperforming the S&P 500 Index’s ($SPX) 21.8% gains and the S&P 500 Financials Sector SPDR’s (XLF) 25.4% returns over the same time frame.
PayPal Holdings’ stock prices soared 8.6% after the release of its better-than-expected Q2 earnings on Jul. 30. The payments giant reported a robust 8.2% year-over-year surge in net revenues, reaching $7.9 billion, exceeding analyst’s topline estimates, driven by 10.7% increase in total payment volumes. It also showcased efficient cost management leading to a 231 basis-points adjusted operating margin expansion to 18.5% compared to the year-ago quarter, translating into an impressive 23.6% growth in adjusted operating profits, totaling $1.5 billion. Meanwhile, its net income grew 28% year-over-year to $1.2 billion.
The stock has maintained its momentum and is trading near its 52-week high of $82.48 achieved in the last trading session.
The consensus opinion on PYPL stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 42 analysts covering the stock, 15 recommend a “Strong Buy,” two suggest a “Moderate Buy,” 24 advise a “Hold,” and one advocates a “Strong Sell” rating. PYPL’s average analyst price target is $81.79, indicating a marginal potential upside from the current levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
