PayPal has been forced to update its 2023 earnings outlook due to its latest financial reports.
multinational digital payment company paypal (NASDAQ: PYPL) has Free Its earnings financial report for the first quarter of 2023. PayPal benefited from the outbreak of the new coronavirus in 2020 as more people switched to online transactions. The company’s revenue grew from $17.8 billion in 2019 to more than $25 billion in 2021. Its shares also increased significantly during the global spread of the deadly virus. PayPal’s share of total retail sales in the US was over 16.4% during this period, but has declined to less than 15% over the past two years.
At the end of the first quarter of 2023, PayPal’s earnings are expected to rise 33% from the prior year to $1.17 per share. Last year, PayPal generated $6.48 billion in revenue, earning 88 cents per share. The online payments company noted that its revenue rose 9% to $7.04 billion, which beat estimates by more than 1%. Meanwhile, analysts expected PayPal to announce a share price of $1.10, which would generate $6.98 billion in revenue.
Analysts Talk PayPal Q1 2023 Earnings
After the easing of pandemic-related restrictions, PayPal’s stock growth began to decline. Andrew Bouch, a senior equity and research analyst at Sumitomo Mitsui Banking Corp., said that PayPal’s traditional retail volume has grown from a volume perspective in a year and a half. Dominic Gabriel, another senior analyst and executive director, explained that many investors and PayPal expected the financials bumper run to continue.
PayPal has been forced to update its 2023 earnings outlook due to its latest financial reports. In a previous report, the company aimed to hit 19% estimated adjusted earnings growth to about $4.87 per share. However, PayPal now expects adjusted earnings growth of about 20% to $4.95 per share.
The financial technology company has shifted from an online checkout site to a mobile shopping and in-person payment hub. The recent PayPal switch has increased competition with local companies such as Square-parent Block and others. Last August, PayPal announced a $15 billion share buyback program. digital payment company announced It plans to reduce its operating costs by cutting around 2000 jobs, roughly 7% of its workforce.
PayPal CEO Dan Schulman did not comment on the 2023 first quarter earnings report. During the 2022 third quarter earnings report, the executive said that there are many unknown factors with respect to the macro environment. He added that the company will control its expenditure and minimize the impact on earnings growth.
After posting exponential gains due to the global health crisis, PayPal stock has fallen from its all-time high of $310.16 reached on July 26, 2021, and currently trades at $72.09 per share. The company’s shares currently hold a relative strength rating of 43 out of 99, the best possible.
Ibukun is a crypto/finance writer interested in delivering relevant information using non-complicated words to reach all types of audiences. Apart from writing, she enjoys watching movies, cooking and exploring restaurants in the city of Lagos where she lives.
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