PayPal Holdings Inc PYPL reported fourth-quarter results after the bell. Here's a rundown of the report and a look at what initially drove shares higher after hours, but are now dropping.
What Happened: PayPal said fourth-quarter revenue increased 7% year-over-year to $7.38 billion, which missed average analyst estimates of $7.39 billion, according to Benzinga Pro.
The payments company reported quarterly earnings of $1.24 per share, which beat consensus estimates of $1.20 per share. PayPal's strong bottom-line results appear to be pushing shares higher after hours.
Total payment volumes in the fourth quarter increased 5% year-over-year to $357.4 billion. Full-year payment volumes came in at $1.36 trillion, up 9% year-over-year.
“2022 was a transformative year for PayPal. We invested in our platform to better serve our customers, while focusing and streamlining our business. We will continue this work throughout 2023, and I am confident that we are well positioned to utilize our unique assets to remain a market leader in digital payments," said Dan Schulman, president and CEO of PayPal.
Schulman announced that he intends to retire from PayPal on Dec. 31, 2023.
Check This Out: Trading Strategies For PayPal Stock After Q4 Earnings
PayPal expects first-quarter revenue growth to be up 7.5% year-over-year. The company sees first-quarter adjusted earnings in a range of $1.08 to $1.10 per share versus estimates of $1.07 per share. PayPal expects full-year adjusted earnings of approximately $4.87 per share versus estimates of $4.75 per share.
The company's better-than-expected guidance also appears to be driving some of the buying activity after hours.
PayPal provides electronic payment solutions to merchants and consumers, with a focus on online transactions. The company leverages technology to make financial services and commerce more convenient, affordable and secure.
PYPL Price Action: PayPal has a 52-week high of $125.28 and a 52-week low of $66.39.
The stock was initially up 4.18% in after-hours trading at $81.70, but turned downwards 3.09% to $78.42, according to Benzinga Pro.
Photo: courtesy of PayPal.
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