By Yasin Ebrahim
Investing.com - PayPal (NASDAQ:PYPL) trimmed its guidance on earnings, but raised its full-year revenue outlook after reporting mixed third-quarter results following a drag from eBay (NASDAQ:EBAY). The payments company also unveiled a partnership with Amazon to allow its users to pay via mobile payment service Venmo.
PayPal Holdings Inc shares gained 0.83% in after-hours trade following the report.
PayPal Holdings Inc announced earnings per share of $1.11 on revenue of $6.18 billion. Analysts polled by Investing.com anticipated EPS of $1.07 on revenue of $6.23 billion.
Total payment volume, or TPV, grew 26% to $310 billion, but growth was held back by a 45% slump in eBay Marketplaces volume.
PayPal said it was teaming up with Amazon to enable customers in the U.S. to pay with Venmo at checkout starting next year 2022. "Customers will be able to make purchases on Amazon.com (NASDAQ:AMZN) and the Amazon mobile shopping app using their Venmo accounts," it added.
The move is expected to boost transaction activity on Venmo, which processed approximately $60 billion in TPV in Q3, up 36% year over year.
Looking ahead, TPV growth was now expected to be in the range of about 33% to 34% and net revenue expected to be in the range of about $25.3 billion to $25.4 billion. That compared with prior guidance for TPV growth in the range of 33% to 35% and net revenue of $25.75 billion.
Adjusted EPS is expected to grow 19% to $4.60, down from prior guidance of $4.70.
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