PayPal’s net profit jumps by more than 100% in the third quarter of the fiscal year.
The online payment processor reported revenues of £4.23 billion in the third quarter.
PayPal forecasts 28% growth in adjusted annual earnings per share.
PayPal Holdings Inc. (NASDAQ: PYPL) said on Monday that its third quarter revenues were better than expected. The company attributed its combative quarterly performance to the coronavirus pandemic, which has fueled electronic commerce in recent months.
On Monday, it was reported that the company’s shares fell by about 6% as trading expanded. So far this year, PayPal’s share price has now risen nearly 70% on the stock market, having gained more than 100% since late March when the impact of COVID-9 peaked. Are you interested in investing online in the stock market? Here is a simple guide to help you get started.
PayPal financial results for Q3 compared to analysts’ estimates
PayPal reported that its third quarter net profit of £790 million was significantly higher than £357.73 million in the same quarter last year. On an adjusted basis, the global online payment system earned 83 pence per share in the final quarter compared to 58.85 pence per share in the same period last year. The FactSet Consensus for PayPal for the third quarter was 72.78 pence per share.
PayPal launched its “buy now, pay later” service in the UK last month.
In terms of revenue, the American company posted £4.23 billion in the third quarter. In comparison, it had lower revenues of £3.39 billion in the third quarter of 2019. Analysts had expected PayPal’s revenue to reach £4.20 billion in the last quarter.
In an announcement in late October, PayPal said it was interested in acquiring crypto companies and working with crypto currencies.
PayPal’s forecast for the full fiscal year
Including 1.5 million trading accounts, the Palo Alto-based company said its total active accounts increased by 15.2 million in the third quarter. The total payment volume processed by PayPal in the third quarter was £191.25 billion, compared to £180.18 billion expected. Its Venmo platform had a total payment volume of £34.07 billion in the last quarter.
For the financial year as a whole, the online payment processor is now forecasting growth in total payments of at least 30 percent and growth in adjusted earnings per share of up to 28 percent. PayPal estimates the growth of its annual turnover on a currency-neutral basis at up to 22%.
PayPal has developed quite positively on the stock exchange in the past year with an annual profit of about 30%. At the time of writing this article, the online payment processor is estimated at 170.58 billion pounds sterling and has a price-earnings ratio of 86.18.