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Wall Street analysts expect Paypal (PYPL) to post quarterly earnings of $1.13 per share in its upcoming report, which indicates a year-over-year decline of 23.7%. Revenues are expected to be $8.23 billion, up 2.5% from the year-ago quarter.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.8% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Bearing this in mind, let's now explore the average estimates of specific Paypal metrics that are commonly monitored and projected by Wall Street analysts.
The combined assessment of analysts suggests that 'Revenues from other value added services' will likely reach $738.97 million. The estimate indicates a year-over-year change of -0.5%.
According to the collective judgment of analysts, 'Transaction revenues' should come in at $7.49 billion. The estimate suggests a change of +2.8% year over year.
The average prediction of analysts places 'Total Payment Volume (TPV)' at $435.29 billion. The estimate compares to the year-ago value of $409.83 billion.
Analysts predict that the 'Transaction margin' will reach 46.4%. The estimate compares to the year-ago value of 45.8%.
Analysts forecast 'Active accounts' to reach 434. Compared to the present estimate, the company reported 426 in the same quarter last year.
The consensus among analysts is that 'Number of payment transactions' will reach 6,930. Compared to the current estimate, the company reported 6,798 in the same quarter of the previous year.
View all Key Company Metrics for Paypal here>>>
Over the past month, Paypal shares have recorded returns of +3.9% versus the Zacks S&P 500 composite's +2.9% change. Based on its Zacks Rank #3 (Hold), PYPL will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>