PayPal (NASDAQ:PYPL) earnings for the payment processing company’s third quarter of 2019 have PYPL stock surging in after-hours trading on Wednesday. This is due to the company’s non-GAAP earnings per share of 61 cents. This is well above Wall Street’s estimate of 52 cents for the quarter. It also helps that revenue of $4.38 billion beats out analysts’ estimates of $4.35 billion for the period.
Let’s take a deeper dive into the most recent PayPal earnings report.
- Non-GAAP EPS is up 5% YoY from 58 cents.
- Revenue is sitting 19% higher than the $3.68 billion reported in the third quarter of 2018.
- The operating margin for the quarter is 15.90%, as compared to 13.30% from the same time last year.
- Net income comes in at $462 million in the third quarter of 2019.
- That’s a 6% increase from net income of $436 million in the same period of the year prior.
- Net new active accounts during the quarter increased by 16% to 295 million.
Dan Schulman, President and CEO of PayPal, says this of the current PYPL stock earnings.
“We had an excellent quarter financially and operationally, reporting 19% revenue growth, more than 200 basis points of operating margin expansion, accelerating TPV growth and nearly 10 million net new active accounts. This quarter we also announced that we will be the first foreign payments platform to be licensed to provide online payment services in China, a very significant development that has the potential to meaningfully expand our addressable market.”
The third-quarter PayPal earnings report also includes its non-GAAP per-share earnings guidance for 2019. This ranges from $3.06 to $3.08. That’s great news for PYPL stock as Wall Street is looking for $2.96 in 2019.
PYPL stock was up 9.17% in after-hours trading on Wednesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.
