PayPal (PYPL) Tops Q4 EPS by 3c, Q1 and FY Guidance Come in Light

PayPal (NASDAQ: PYPL) reported Q4 EPS of $0.86, $0.03 better than the analyst estimate of $0.83. Revenue for the quarter came in at $4.96 billion versus the consensus estimate of $4.94 billion.

GUIDANCE:

PayPal sees FY2020 EPS of $3.39-$3.46, versus the consensus of $3.49. PayPal sees FY2020 revenue of $20.8-21 billion, versus the consensus of $20.79 billion.

• PayPal expects revenue to grow approximately 17 - 18% at current spot rates and approximately 18 - 19% on an FX-neutral basis, to a range of $20.8 - $21.0 billion.
• PayPal expects GAAP earnings per diluted share in the range of $1.84 - $1.95 and non-GAAP earnings per diluted share in the range of $3.39 - $3.46.
• GAAP earnings per diluted share guidance includes an estimated $0.02 of unrealized gains from PayPal's strategic investment portfolio in 2020.
• In 2020, non-GAAP earnings per diluted share will exclude the impact of realized and unrealized gains and losses on PayPal's strategic investment portfolio.
• In 2019, GAAP and non-GAAP earnings per diluted share included approximately $0.14 of net unrealized gains from PayPal's strategic investment portfolio.
• Estimated non-GAAP amounts for the twelve months ending December 31, 2020, reflect adjustments of approximately $1.82 - $1.94 billion, including estimated stock-based compensation expense and related payroll taxes in the range of $1.31 - $1.38 billion.
• The dilutive impact of acquisitions is estimated to be in the range of $0.68 - $0.70 on GAAP earnings per diluted share, including an estimated $0.30 of negative impact related to taxes associated with the acquisition of Honey, and $0.08 - $0.10 on non-GAAP earnings per diluted share.

PayPal sees Q1 EPS of $0.76-$0.78, versus the consensus of $0.82. PayPal sees FY2020 revenue of $4.78-4.84 billion, versus the consensus of $4.85 billion.

• PayPal expects revenue to grow 16 - 17% at current spot rates and 17 - 18% on an FX-neutral basis, to a range of $4.78 - $4.84 billion.
• PayPal expects GAAP earnings per diluted share in the range of $0.16 - $0.21 and non-GAAP earnings per diluted share in the range of $0.76 - $0.78.
• GAAP earnings per diluted share guidance includes an estimated $0.02 of unrealized gains from PayPal's strategic investment portfolio in the first quarter of 2020.
• In 2020, non-GAAP earnings per diluted share will exclude the impact of realized and unrealized gains and losses on PayPal's strategic investment portfolio.
• In the first quarter of 2019, GAAP and non-GAAP earnings per diluted share included approximately $0.12 of net unrealized gains from PayPal's strategic investment portfolio.
• Estimated non-GAAP amounts for the three months ending March 31, 2020, reflect adjustments of approximately $480 - $520 million, including estimated stock-based compensation expense and related payroll taxes in the range of $350 - $370 million.
• The dilutive impact of acquisitions is estimated to be in the range of $0.41 - $0.43 on GAAP earnings per diluted share, including an estimated $0.30 of negative impact related to taxes associated with the acquisition of Honey, and $0.02 - $0.03 on non-GAAP earnings per diluted share.

For earnings history and earnings-related data on PayPal (PYPL) click here.

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