Earnings Preview For PayPal Holdings
PayPal Holdings (NASDAQ:PYPL) is set to give its latest quarterly earnings report on Tuesday, 2025-04-29. Here's what investors need to know before the announcement.
Analysts estimate that PayPal Holdings will report an earnings per share (EPS) of $1.16.
The announcement from PayPal Holdings is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Earnings Track Record
During the last quarter, the company reported an EPS beat by $0.07, leading to a 1.9% increase in the share price on the subsequent day.
Here's a look at PayPal Holdings's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.12 | 1.07 | 0.89 | 1.14 |
| EPS Actual | 1.19 | 1.20 | 1.19 | 1.08 |
| Price Change % | 2.0% | -3.0% | 3.0% | -3.0% |
PayPal Holdings Share Price Analysis
Shares of PayPal Holdings were trading at $65.34 as of April 25. Over the last 52-week period, shares are down 3.64%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.
Analyst Views on PayPal Holdings
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on PayPal Holdings.
With 15 analyst ratings, PayPal Holdings has a consensus rating of Neutral. The average one-year price target is $84.13, indicating a potential 28.76% upside.
Peer Ratings Comparison
The below comparison of the analyst ratings and average 1-year price targets of Fidelity National Info, Block and Fiserv, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Fidelity National Info, with an average 1-year price target of $88.27, suggesting a potential 35.09% upside.
- Analysts currently favor an Outperform trajectory for Block, with an average 1-year price target of $86.64, suggesting a potential 32.6% upside.
- Analysts currently favor an Outperform trajectory for Fiserv, with an average 1-year price target of $256.5, suggesting a potential 292.56% upside.
Key Findings: Peer Analysis Summary
Within the peer analysis summary, vital metrics for Fidelity National Info, Block and Fiserv are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| PayPal Holdings | Neutral | 4.24% | $3.94B | 5.52% |
| Fidelity National Info | Neutral | 3.42% | $976M | 1.74% |
| Block | Outperform | 4.50% | $2.31B | 9.45% |
| Fiserv | Outperform | -2.30% | $3.23B | 3.21% |
Key Takeaway:
PayPal Holdings ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth. The company's consensus rating is neutral, similar to two of its peers.
Discovering PayPal Holdings: A Closer Look
PayPal was spun off from eBay in 2015 and provides electronic payment solutions to merchants and consumers, with a focus on online transactions. The company had 434 million active accounts at the end of 2024. The company also owns Venmo, a person-to-person payment platform.
PayPal Holdings: A Financial Overview
Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
Revenue Growth: Over the 3 months period, PayPal Holdings showcased positive performance, achieving a revenue growth rate of 4.24% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: PayPal Holdings's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 13.4% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): PayPal Holdings's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 5.52%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): PayPal Holdings's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.36%, the company may face hurdles in achieving optimal financial performance.
Debt Management: PayPal Holdings's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.48.
To track all earnings releases for PayPal Holdings visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.