Shares of PayPal Holdings took a plunge in late trading on Wednesday after the company's latest financial results failed to meet Wall Street's expectations.

According to FactSet, PayPal reported non-GAAP earnings of $1.16 per share, slightly surpassing the projected $1.15. The company's revenue of $7.3 billion also exceeded expectations of $7.27 billion. Additionally, PayPal's total payment volume of $376.5 billion outperformed estimates of $368.87 billion.

Despite these positive figures, PayPal shares (ticker: PYPL) experienced a 6.7% decline in after-hours trading.

Analyst Trevor Williams from Jefferies, who rates the stock as Hold with a $75 price target, points out that investors are concerned about a decrease in transactional gross profit that fell short of expectations. Furthermore, the transactional take rate decreased to 1.74%, compared to the expected 1.79%.

Looking ahead, PayPal forecasts its third-quarter revenue to reach $7.4 billion. The company expects non-GAAP earnings per share to range between $1.22 and $1.24. These projections slightly exceeded the FactSet consensus forecasts of $1.21 per share and revenue of $7.33 billion.

CEO Dan Schulman expressed confidence in the company's progress, stating, "We have high confidence that our business is on the right path and we're seeing clear signs that the investments we've made are paying off," in the earnings release.

ABVC Biopharma Shares Drop 15% After Exclusive Licensing Deal in China

China's Services Sector Sees Continued Recovery in July

Leave A Reply

Your email address will not be published. Required fields are marked *

Related posts

Smith Douglas Homes Corp. Prepares for NYSE Debut
News

Smith Douglas Homes Corp. Prepares for NYSE Debut

Smith Douglas Homes Corp. is preparing for its initial public offering (IPO) on the NYSE, backed by leading financial in...

Kromek Group Secures $1 Million Worth of Orders in CBRN Detection Sector
News

Kromek Group Secures $1 Million Worth of Orders in CBRN Detection Sector

Kromek Group receives $1 million orders in CBRN detection sector, driving revenue growth and ensuring public safety.

Banking Shares Remain Stable as Investors Monitor Central Bank Movements
News

Banking Shares Remain Stable as Investors Monitor Central Bank Movements

Banking shares remain stable as investors closely monitor central bank movements. US labor market softens slightly, whil...

New York Art Auctions Expected to Reach $2.5 Billion
News

New York Art Auctions Expected to Reach $2.5 Billion

Several high-profile art auctions in New York are expected to generate $2.5 billion in proceeds, with cautious buyers in...