PayPal Beats on Revenue and Profit, but Shows Waning Growth Momentum

PayPal reported Q1 revenue of $7.04 billion, up 9% YoY. Although revenue topped the Street consensus estimate of $6.98 billion, PYPL share price decreased immediately after the publication, and investors feared the fintech giant is losing momentum of its expansion and international remittance domination it had been enjoying before, which peaked during Covid-19 pandemic. As of today, May 10, PayPal is currently trading 1.27% down to below $65.

The company also reported Q1 earnings of $1.17 per share, also slightly beating Wall Street expectations of $1.10.

Total payments in the first quarter amounted to $354.5 billion, up 10% YoY. Payment transactions totaled 5.8 billion, up 13% YoY.

In terms of guidance, second-quarter EPS is expected to be between $1.15 and $1.17, compared with Street's forecast of $1.04. For the full fiscal year, PayPal expects earnings per share of $4.95, above Wall Street estimates of $4.36.

The company expects to repurchase shares totaling about $4 billion throughout the fiscal year.