PayPal Holdings’ first quarter earnings surpassed analysts’ estimates.
The online payments systems company reported adjusted earnings of 78 cents a share, which exceeded the 68 cents expected by analysts surveyed by FactSet. The figure is also higher than the year-ago quarter’s 57 cents a year.
The company’s revenue of $4.13 billion was in line with analysts' estimates.
PayPal added 9.3 million new active accounts during the quarter, leading to a total count of 277 million. Total payment volume increased to $161 billion, compared to analysts’ expectations of $163 billion.
Reporting for its Venmo peer-to-peer digital payment service, PayPal said that around 40 million people used it for at least one transaction in the last 12 months, contributing up to $21 billion in total payment volume in the first quarter.
Looking ahead, PayPal expects revenue to range between $4.3 billion and $4.34 billion for the current quarter. It estimates adjusted per-share earnings to come in between 68 cents and 70 cents for the quarter. For the full year, the company bumped up its earnings per share outlook to between $2.94 and $3.01.
The 50-day moving average for PYPL moved above the 200-day moving average on March 28, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
The Momentum Indicator moved above the 0 level on April 26, 2024. You may want to consider a long position or call options on PYPL as a result. In of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for PYPL just turned positive on April 29, 2024. Looking at past instances where PYPL's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
PYPL moved above its 50-day moving average on April 19, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PYPL advanced for three days, in of 316 cases, the price rose further within the following month. The odds of a continued upward trend are .
The 10-day RSI Indicator for PYPL moved out of overbought territory on April 01, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 32 similar instances where the indicator moved out of overbought territory. In of the 32 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 62 cases where PYPL's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PYPL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
PYPL broke above its upper Bollinger Band on April 30, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for PYPL entered a downward trend on April 29, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. PYPL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.310) is normal, around the industry mean (4.672). P/E Ratio (16.930) is within average values for comparable stocks, (53.143). Projected Growth (PEG Ratio) (0.600) is also within normal values, averaging (3.039). PYPL has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.042). P/S Ratio (2.417) is also within normal values, averaging (4.549).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PYPL’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of digital and mobile payments on behalf of consumers and merchants
Industry FinanceRentalLeasing