PayPal earnings (NASDAQ:PYPL) were posted late in the day on Wednesday and the company’s results included revenue that increased more than 10% year-over-year, as well as earnings that topped expectations, yet PYPL stock was sinking as the company’s guidance for the current quarter was underwhelming.
The payment services provider said that for its first quarter of its fiscal 2018, it brought in GAAP net income of $584 million, or 49 cents per share. This figure is down from the company’s $620 million, or 50 cents per share from the year-ago quarter.
PayPal added that its revenue for the quarter came in at $4.23 billion, beating the $3.69 billion from its fourth quarter of its fiscal 2017, marking a 14.6% surge compared to the year-ago quarter. The online payments pioneer added that it saw $164 billion in total payment volume flow through its network, ahead of the $131 billion from the year-ago quarter.
The company did disappoint with its first-quarter guidance as it sees earnings for the period reaching roughly 66 cents to 68 cents per share, while analysts see this figure as being 68 cents per share. PayPal also sees its revenue for the quarter in the range of $4.08 billion to $4.13 billion, below the $4.16 billion that analysts call for.
PYPL stock was plummeting roughly 5.1% after the bell on Wednesday as the payment services provider posted its quarterly report for its latest period, which missed estimates. Shares had increased about 1.4% during regular trading hours in anticipation of PayPal’s results.
