PayPal (NASDAQ:PYPL) earnings for first quarter of 2020 have PYPL stock taking a beating after-hours Wednesday. That’s after reporting adjusted earnings per share (EPS) of 66 cents, which misses Wall Street’s estimate of 75 cents. The payment services company’s revenue of $4.62 billion also comes in below analysts’ estimates of $4.74 billion.
Now, let’s take a more thorough look into the most recent PayPal earnings report.
- Adjusted earnings per share come in the same as they were in Q1 2019.
- Revenue for the quarter is up 12% from the $4.13 billion reported during the same period of the year prior.
- Its operating margin coming in at 8.6% is a drop compared to 12.5% in the first quarter of the previous year.
- The PayPal earnings report also has it bringing in a net income of $84 million.
- That’s an 87% decline from the company’s net income of $667 million from the same time last year.
John Rainey, PayPal’s CFO and executive vice president of Global Customer Operations, said this about the Q1 earnings:
“The diversity of our platform and customer base across products and geographies positions us well during this unprecedented time. Our free cash flow and strong balance sheet allow us to continue investing to serve the needs of our customers.”
PayPal notes that it is withdrawing its outlook for 2020. While it doesn’t give a reason, the culprit is likely the novel coronavirus. The pandemic has been causing problems for the economy, making guidance predictions unpredictable.
PYPL stock was down 4.1% after-hours Wednesday but closed out the day up 2.3%.
As of this writing, William White did not hold a position in any of the aforementioned securities.
