PayPal has been forced to update its 2023 earnings outlook due to its latest financial reports. Multinational digital payment company PayPal (NASDAQ: PYPL) has released the financial report of its earnings in the first quarter of 2023. PayPal benefited from the outbreak of the novel coronavirus in 2020 as more people switched to online transactions. The company’s revenue ascended from .8 billion in 2019 to over billion in 2021. Its shares also increased significantly during the global spread of the deadly virus. PayPal accounted for more than 16.4% of total retail sales in the US during the period but has slipped under 15% in the past two years. At the end of the first quarter of 2023, PayPal earnings increased by 33% from the previous year to .17 per share. Last year, PayPal
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PayPal has been forced to update its 2023 earnings outlook due to its latest financial reports.
Multinational digital payment company PayPal (NASDAQ: PYPL) has released the financial report of its earnings in the first quarter of 2023. PayPal benefited from the outbreak of the novel coronavirus in 2020 as more people switched to online transactions. The company’s revenue ascended from $17.8 billion in 2019 to over $25 billion in 2021. Its shares also increased significantly during the global spread of the deadly virus. PayPal accounted for more than 16.4% of total retail sales in the US during the period but has slipped under 15% in the past two years.
At the end of the first quarter of 2023, PayPal earnings increased by 33% from the previous year to $1.17 per share. Last year, PayPal generated a revenue of $6.48 billion, earning 88 cents per share. The online payment company noted that its revenue spiked by 9% to $7.04 billion, beating estimates by 1%. Meanwhile, analysts expected PayPal to announce a share price of $1.10, earning $6.98 billion in revenue.
Analysts Speak on PayPal Q1 2023 Earnings
After easing pandemic restrictions, PayPal’s stock growth began to decline. A senior equity and research analyst at Sumitomo Mitsui Banking Corp., Andrew Bauch, said PayPal’s traditional retail volume has exceeded a volume perspective over a year and a half. Another senior analyst and executive director, Dominick Gabriele, explained that many investors and PayPal expected the financial bumper run to continue.
PayPal has been forced to update its 2023 earnings outlook due to its latest financial reports. In a previous report, the company aims to hit a 19% predicted adjusted earnings growth to about $4.87 per share. However, PayPal now expects an adjusted earnings growth of about 20% to $4.95 per share.
The financial technology company has shifted from an online checkout site to a mobile shopping and in-person payment hub. The recent PayPal switch has increased competition with local companies like Square-parent Block and others. Last August, PayPal announced a $15 billion share buyback program. The digital payment company has announced plans to slough off its operating cost by cutting about 2000 jobs, approximately 7% of its workforce.
The CEO of PayPal Dan Schulman did not comment on the earnings report for the first quarter of 2023. During the 2022 third-quarter earnings report, the executive said there are several unknown factors regarding the macro environment. He noted that the company would control its expenditure and reduce implications on earnings growth.
After amassing exponential gains due to the global health crisis, PayPal stock has plummeted from an all-time high of $310.16 achieved on July 26, 2021, and currently trades at $72.09 per share. The company’s shares currently hold a Relative Strength Rating of 43 out of the best-possible 99.
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.