PayPal (PYPL) Reports In-Line Q1 EPS, Guidance Misses

PayPal (NASDAQ: PYPL) reported Q1 EPS of $0.88, in-line with the analyst estimate of $0.88. Revenue for the quarter came in at $6.4 billion versus the consensus estimate of $6.4 billion.

GUIDANCE:

PayPal sees Q2 2022 EPS of $0.86, versus the consensus of $1.12.

• • Net revenues expected to grow ~9% on a spot and FXN basis • Revenue excluding eBay expected to grow ~14% on a spot basis • GAAP earnings per diluted share expected to be in the range of ~$0.44-$0.46 compared to $1.00 in the prior year period, and non-GAAP earnings per diluted share of ~$0.86, compared to $1.15 in the prior year period • In the second quarter of 2021, GAAP EPS included a net gain of approximately $0.20 on PayPal’s strategic investment portfolio • In the second quarter of 2021, GAAP and non-GAAP EPS included a benefit of approximately $0.11 from the release of credit reserves • Estimated non-GAAP amounts for the three months ending June 30, 2022 reflect adjustments of approximately $590 million, primarily representing estimated stock-based compensation expense and related payroll taxes of approximately $370 million

PayPal sees FY2022 EPS of $3.81-$3.93, versus the consensus of $4.63.

• • TPV expected to grow ~13%-15% on a spot basis and ~15%-17% FXN • Net revenues expected to grow ~11%-13% on a spot and FXN basis • Revenue excluding eBay expected to grow ~15%-17% on a spot basis • GAAP earnings per diluted share expected to be in the range of ~$2.19-$2.34, compared to $3.52 in FY’21, and non-GAAP earnings per diluted share expected to be in the range of ~$3.81-$3.93, compared to $4.60 in FY’21 • In 2021, GAAP EPS included a net gain of approximately $0.06 on PayPal’s strategic investment portfolio • In 2021, GAAP and non-GAAP EPS included a benefit of approximately $0.21 from the release of credit reserves • Estimated non-GAAP amounts for the twelve months ending December 31, 2022 reflect adjustments of approximately $2.2 billion, including estimated stock-based compensation expense and related payroll taxes of approximately $1.6 billion

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

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