PayPal Stock Before Q4 Earnings: Smart Buy or Risky Move?

En este artículo:

PayPal PYPL is set to report its fourth-quarter 2024 results on Feb. 4.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

PYPL expects low-single-digit growth in revenues on a year-over-year basis for the to-be-reported quarter. Non-GAAP earnings are expected to exhibit a low to mid-single-digit decrease on a year-over-year basis.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $8.23 billion, indicating an increase of 2.52% from the year-ago quarter’s reported figure.

PayPal Holdings, Inc. Price and EPS Surprise

PayPal Holdings, Inc. Price and EPS Surprise
PayPal Holdings, Inc. Price and EPS Surprise

PayPal Holdings, Inc. price-eps-surprise | PayPal Holdings, Inc. Quote

 

The consensus mark for earnings stands at $1.13 per share, up a couple of cents over the past 30 days, suggesting a decline of 23.65% from the figure reported in the year-ago quarter.

PayPal’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, with an average surprise of 15.14%.

Let’s see how things have shaped up for the upcoming announcement.

Strong Portfolio, Rich Partner Base to Aid PYPL’s Q4 Results

PYPL’s fourth-quarter results are expected to reflect portfolio strength. The unveiling of Fastlane, which enhances the guest checkout experience by allowing users to complete their purchase in one click, remains noteworthy. Since its August launch, more than 1,000 merchants have been using Fastlane to provide a seamless experience to their customers and drive increased conversion.

Strong monetization efforts of Venmo are likely to have aided Total Payments Volume in the to-be-reported quarter.

PYPL’s rich partner base, which includes Amazon AMZN, Shopify SHOP, Apple, Alphabet and Meta Platforms META, has been a key catalyst. The integration of PayPal and Venmo credit or debit cards into Apple Wallet has been a noteworthy development.

PayPal is now an additional processor for Shopify Payments in the United States. Its branded checkout solutions are now integrated into Shopify Payments. This creates a single and unified experience for business owners to drive operational efficiency.

PayPal’s partnership with Amazon now brings PayPal Checkout to SMBs offering Buy with Prime. Its collaboration with Apple and Google to integrate the Venmo debit card with Apple Pay and Google Pay has been a noteworthy development.

PayPal is a top payment method for advertisers and consumers globally across Meta Platforms’ family of apps. Creators and developers are using Hyperwallet. META also uses Braintree for credit card processing.

PYPL Shares Outperform Sector, Industry

Paypal shares have appreciated 44.3% in the trailing 12 months, outperforming the Zacks Computer & Technology sector’s return of 28% and the Zacks Internet Software Industry’s 40.4%.