PayPal Gears Up for Q4 Earnings with Promising Growth Ahead
Analysts Anticipate Continued Profit Growth in Upcoming Reports
Valued at a market cap of $83.6 billion, California-based PayPal Holdings, Inc. (PYPL) stands as a major player in the financial technology sector, providing digital payment solutions for consumers and merchants around the globe. The company operates in numerous countries, cementing its position as a key force in the fintech industry. PayPal is set to announce its Q4 earnings before market opening on Wednesday, February 5.
As the earnings date approaches, analysts predict PayPal will report a profit of $1.11 per share. This figure marks a slight increase from the $1.10 per share reported during the same quarter last year. Impressively, the company has outperformed Wall Street’s earnings per share (EPS) estimates in each of the past four quarters, including an EPS of $1.20 last quarter, exceeding projections by 11.1%.
Looking forward, analysts forecast PayPal’s EPS will reach $4.57 in fiscal 2024, representing an increase of 20.9% from $3.78 in fiscal 2023.
Over the past year, PYPL shares have surged by 39.4%, significantly outperforming the S&P 500 Index’s ($SPX) 22% gains and the S&P 500 Financials Sector SPDR’s (XLF) 26.8% returns during the same period.
The year 2024 has seen PayPal’s shares rise 39%, exceeding the S&P 500’s ($SPX) 23.3% return. This marks a notable turnaround following a period of poor performance, where PayPal’s stock reached multi-year lows earlier this year. Increased profits have driven this positive shift, attributed to improved transaction margins and more controlled operating costs.
Investors have shown growing confidence in PayPal over the past year. The prospect of declining interest rates likely contributes to an uptick in consumer spending, bolstering the company’s positive momentum. On December 13, PayPal’s stock rose over 1% after Wolfe Research upgraded its rating from “Peer Perform” to “Outperform,” setting a price target of $107.
Overall, analysts maintain a moderately optimistic stance on PayPal stock, reflected in a consensus “Moderate Buy” rating. Out of 41 analysts covering the stock, 17 recommend a “Strong Buy,” two opt for a “Moderate Buy,” while 21 suggest a “Hold” rating; one analyst issues a “Strong Sell.”
The average target price for PayPal is set at $93.23, indicating a potential upside of 11% from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
