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PayPal tops Wall Street estimates on higher customer traffic, shares rally

Published 10/23/2019, 06:24 PM
Updated 10/23/2019, 06:28 PM
PayPal tops Wall Street estimates on higher customer traffic, shares rally
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(Reuters) - PayPal Holdings Inc (O:PYPL) reported a better-than-expected quarterly profit on Wednesday as more people used its payment processing platform to make transactions and forecast full-year adjusted profit above Wall Street estimates.

Shares of the San Jose, California-based company were up 8.3% in extended trading.

The company, which separated from eBay Inc (O:EBAY) in 2015, has made a number of acquisitions since then to expand its business.

PayPal, which facilitates payments on apps like Uber (NYSE:UBER), eBay, Hulu and Spotify (NYSE:SPOT), reported a 19% rise in its revenue at $4.38 billion, above analysts' expectations of $4.35 billion, according to IBES data from Refinitiv.

Total payment volume (TPV), or the value of payments completed through PayPal's platform, rose 25% to $178.67 billion, beating estimates of $177.32 billion.

Number of payment transactions per active account that measures consumer engagement also rose 9% to 39.8.

Net income rose to $462 million, or 39 cents per share, in the quarter ended Sept 30, from $436 million, or 36 cents per share, a year earlier.

Excluding one-time items, the company earned 61 cents per share, beating analysts' average estimates of 52 cents.

PayPal expects 2019 adjusted profit between $3.06 and $3.08 per share. Analysts were expecting $2.97 per share.

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