PayPal Holdings Inc (NASDAQ: PYPL) shares were up over 6% today, after the company reported its first quarter 2017 financial results and raised its guidance for the full year. The payments company also beat its revenue and EPS estimates. With the advent of Apple Pay and Samsung Pay, PayPal was still able to operate on all cylinders and provide strong results.

Here’s a look at PayPal on the daily chart:

Source: Investing.com

Let’s move onto the company’s financial results.

PayPal First Quarter 2017 Financial Results

PayPal reported revenue of $2.98B for the first quarter of the 2017 fiscal year, which beat the Thomson Reuters consensus estimate of $2.94B. This was a growth rate of 17% from its reported revenue for the first quarter of 2016. Now, on a foreign currency neutral basis, PayPal’s revenue rose by 19% year over year. Additionally the company reported non-GAAP earnings per share (EPS) of 44 cents, which beat the Thomson Reuters consensus estimate of 41 cents. Now, PayPal’s non-GAAP EPS also rose 19% year over year.

Let’s move onto some operating highlights in the first quarter of 2017, the company had 6M active customer accounts added, and PayPal ended the quarter with 203M active customer accounts, which includes 16M merchant accounts. The company’s payment transactions grew by 23% year over year to 1.7B. PayPal also had $99B in total payment volume, which was up 23%, from the first quarter of the 2016 fiscal year.

According to PayPal President and CEO Dan Schulman, “With another quarter of strong financial results, we continue to deliver on our vision to democratize financial services for our consumers and drive the global transition from cash to digital payments…We are deepening our merchant offerings and relationships, and expanding our network of strategic partnerships to make PayPal more available in new contexts and new markets.”

The company also has strategic partnerships that could potentially boost its revenues and earnings. PayPal recently announced that it expanded its relationship with Google, and PayPal would be available in the Android Pay wallet in the U.S. Consequently, this could be one key revenue driver. Not only that, but PayPal also announced an agreement with Wells Fargo, and extended its partnership with Visa into the Asia-Pacific region.

That in mind, the company raised its guidance, and PayPal is poised to rise due to these partnerships.

PayPal Guidance

PayPal raised its full-year 2017 revenue guidance, and it expects its revenue to grow between 15% and 17% at the current spot rates, to a range between $12.52B and $12.72B. Additionally, the company expects its non-GAAP diluted EPS to come in at a range between $1.74 and $1.79.

Moving on, PayPal expects its 2Q 2017 revenue to grow between 15% and 17%, to a range between $3.05B and $3.1B. PayPal expects its non-GAAP diluted EPS to come in at 41 cents and 43 cents for the second quarter of the 2017 fiscal year.

Final Thoughts

PayPal reported strong revenue growth, and raised its full-year 2017 and second quarter 2017 financial results. The company’s strategic partnerships, as well as its guidance raise, could potentially drive the stock higher.



Author: Jason Bond

Jason taught himself to trade while working as a full-time gym teacher; his trading profits grew eventually allowed him to free himself of over $250,000 in student loans!

Now a multimillionaire and a highly skilled trader and trading coach, Over 30,000 people credit Jason with teaching them how to trade and find profitable trades. Jason specializes in both swing trades and in selling options using spread trades, which balance the risk of selling options. Jason is Co-Founder of RagingBull.com and the RagingBull.com Foundation which donates trading profits to charity. So far the foundation donated over $600,000 to charity.

Learn More

Leave your comment

Related Articles: