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PayPal (NASDAQ:PYPL) shares fell 8.28% to $82.10 in pre-market trading as of 08:52 a.m. ET Tuesday after reporting fiscal Q4 earnings of $1.19 per share, surpassing analyst expectations of $1.12.
Despite the earnings beat, concerns over declining payment transactions weighed on the stock. The company's total payment volume grew 7% to $437.8 billion, and net revenue reached $8.37 billion, exceeding estimates of $8.26 billion. However, branded payment growth of 6% fell short of expectations, and Q4 payment transactions declined 3% to 6.6 billion, raising investor concerns.
CEO Alex Chriss highlighted improvements in Branded Checkout, peer-to-peer payments, and Venmo but acknowledged areas needing further development. Mizuho analyst Dan Dolev noted that weakness in Branded Checkout is central to investor concerns about PayPal's long-term growth.
For fiscal 2025, PayPal expects adjusted EPS between $4.95 and $5.10, slightly above the $4.90 analyst forecast. First-quarter EPS is projected at $1.15-$1.17, ahead of the $1.13 consensus estimate. The company also announced a $15 billion stock buyback program.
This article first appeared on GuruFocus.