PayPal Holdings Inc (NASDAQ: PYPL)
PayPal reported its 2018 third-quarter financial results after markets closed on Thursday, Oct. 18. The payments company beat on both the top and bottom lines, and boosted its adjusted earnings-per-share outlook for the full year.
Further, PayPal announced that it is going to partner with American Express to offer a reward points service. According to the company, the new that will allow people to purchase items with reward points when using its payment platform, a move aimed at adding value to its existing customers.
Shares of PayPal rallied $5.76, or 7.43% to $83.84 in post-market trade on Thursday, having ended the regular session with a loss of $2.61, or 3.26% to change hands at $77.48. The stock was up about 5% since the beginning of the year through Thursday.
PYPL Earnings & Outlook
The company posted a net income of $436 million, or $0.36 per share, compared with $380 million, or $0.31 per share, in the same period a year ago.
After stripping out special items, earnings came in at $0.58 per share, an improvement from $0.46 per share in the third-quarter of the previous year.
Revenues during the quarter were $3.68 billion, up from $3.24 billion in the prior-year period. Analysts were calling for adjusted earnings of $0.54 per share on revenue of 3.66 billion, according to figures compiled by FactSet.
Payment volume during the quarter was $143 billion, compared with $114 billion in the earlier year period. Looking ahead, the company hopes to report fourth quarter adjusted earnings of between $0.65 and $0.67 per share.
Analysts are anticipating earnings of $0.65 per share for the quarter. PayPal sees fourth-quarter net revenue in the range of $4.20 billion to $4.28 billion, while analysts expect it to report revenues of $4.22 billion.
PayPal Holdings CEO Comments
“PayPal had another excellent quarter. New partnerships with American Express and Walmart will increase the value that we can offer to our customers. Our strong balance sheet and cash flow enable us to aggressively invest in innovation and growth, creating sustainable and long-term value for our shareholders,” commented Dan Schulman, President and CEO of PayPal Holdings.
PayPal Holdings, Inc. Company Profile
PayPal Holdings, Inc. operates as a technology platform company that enables digital and mobile payments on behalf of consumers and merchants worldwide. Its payment solutions include PayPal, PayPal Credit, Braintree, Venmo, Xoom, and Paydiant products.
The company’s platform allows consumers to shop by sending payments, withdraw funds to their bank accounts, and hold balances in their PayPal accounts in various currencies. It also offers gateway services that enable merchants to accept payments online with credit or debit cards.
PayPal Holdings, Inc. was founded in 1998 and is headquartered in San Jose, California. – Yahoo Finance