PayPal (PYPL) Tops Q2 EPS by 6c, Offers Guidance

PayPal (NASDAQ: PYPL) reported Q2 EPS of $0.93, $0.06 better than the analyst estimate of $0.87. Revenue for the quarter came in at $6.8 billion versus the consensus estimate of $6.77 billion.

GUIDANCE:

PayPal sees Q3 2022 EPS of $0.94-$0.96, versus the consensus of $0.97.

• • Net revenues expected to reach $6.80 billion, growing ~10% on a spot basis and ~12% FXN ◦ Revenue excluding eBay expected to grow ~12% on a spot basis and ~13.5% FXN • GAAP earnings per diluted share expected to be in the range of ~$0.61-$0.63 compared to $0.92 in the prior year period, and non-GAAP earnings per diluted share expected to be in the range of ~$0.94-$0.96, compared to $1.11 in the prior year period ◦ In the third quarter of 2021, GAAP EPS included a net gain of approximately $0.13 on PayPal’s strategic investment portfolio ◦ In the third quarter of 2021, GAAP and non-GAAP EPS included a benefit of approximately $0.04 from the release of credit reserves ◦ Estimated non-GAAP amounts for the three months ending September 30, 2022 reflect adjustments of approximately $450 million, primarily represent

PayPal sees FY2022 EPS of $3.87-$3.97, versus the consensus of $3.85.

• TPV expected to grow ~12% on a spot basis and ~16% FXN • Net revenues expected to reach $27.85 billion, growing ~10% on a spot basis and ~11% FXN, the low end of prior currency-neutral guidance ◦ Revenue excluding eBay expected to grow ~13.5% on a spot basis and ~14.5% FXN • GAAP earnings per diluted share expected to be in the range of ~$1.52-$1.62, compared to $3.52 in FY’21, and raising expected non-GAAP EPS to the range of ~$3.87-$3.97, 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 $2.1 billion, including estimated stock-based compensation expense and related payroll taxes of approximately $1.5 billion

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

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