Investing.com - PayPal Holdings Inc reported on Wednesday fourth quarter earnings that beat analysts' forecasts and revenue that topped expectations.
PayPal (NASDAQ:PYPL) announced earnings per share of $0.86 on revenue of $4.96 billion. Analysts polled by Investing.com anticipated EPS of $0.83 on revenue of $4.94 billion. That compares with EPS of $0.69 on revenue of $4.23 billion in the same period a year before.
PayPal had reported EPS of $0.61 on revenue of $4.38 billion in the previous quarter. Analysts are expecting EPS of $0.82 and revenue of $4.85 billion in the upcoming quarter.
“The online payment industry has a strong upside at a time when e-commerce is gaining share everywhere,” Investing.com analyst Haris Anwar said. “That’s the reason we continue to see strong revenue growth for PayPal, especially when the company’s recent acquisitions are starting to diversify its revenue base.”
’In the short term, however, PayPal has to quickly justify some of its costly deals, including the one it made in November to purchase an online coupon site Honey Science Corp. for about $4 billion, its biggest ever,” Anwar added.
PayPal shares are up 7% from the beginning of the year and are trading at $114.00, still down 3.98% from its 52-week high of $121.48 set on July 16, 2019. They are outperforming the Nasdaq 100 which is up 3.4% year to date.
PayPal shares lost 2.27% in after-hours trade after the report.
PayPal Holdings Inc follows other major Financial sector earnings this month
PayPal Holdings Inc's report follows an earnings beat by JPMorgan on January 14, who reported EPS of $2.57 on revenue of $29.21B, compared to forecasts EPS of $2.35 on revenue of $27.87B.
Mastercard had beat expectations on Wednesday with fourth quarter EPS of $1.96 on revenue of $4.41B, compared to forecast for EPS of $1.87 on revenue of $4.4B.
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