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E-commerce payment processor PayPal Holdings Inc beat Wall Street estimates on Wednesday with an 86 percent rise in quarterly earnings, fueled by the shift to online spending amid the coronavirus pandemic.
The company said it expects trends to continue and said that for the full year it now expects earnings per share to increase approximately 25 percent with revenue growth of 22 percent.
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Three months ago, the company had withdrawn the year-round guidance due to uncertainty about the economic consequences of the pandemic.
| Heart | Security | Latest | Change | Change% |
|---|---|---|---|---|
| PYPL | PAYPAL HOLDINGS INC. | 184.60 | +8.33 | + 4.73% |
“Digital payments have become more important and essential than ever,” said CEO Dan Schulman.
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The company processed $ 222 billion in payments during the period, 30% more than the previous year, adjusted for currencies. Payment growth rate compares to a 26 percent increase from the previous year that had slowed to 19 percent in the first quarter when the pandemic broke out and retail spending largely collapsed.
The company added 21.3 million accounts during the quarter, an increase of 137 percent over the previous year.
Revenue rose 25 percent to $ 5.26 billion, beating analysts’ average estimate of $ 5.0 billion.
Net income increased to $ 1.53 billion, or $ 1.29 per share, in the quarter ended June 30, from $ 823 million, or 69 cents a share, a year earlier.
The results reflected an unrealized investment gain of 58 cents per share and included additional reserves for credit losses of 7 cents per share, below the addition of reserves of 17 cents in the first quarter.
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On an adjusted basis, the company said net income increased to $ 1.26 billion, or $ 1.07 per share, from $ 848 million, or 71 cents per share, a year earlier.
The company’s shares were more than 5 percent higher after the bell.
Since the last reporting results on May 6, PayPal’s shares had increased more than 40 percent as an investment in e-commerce.
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