PayPal Q2 Profit Drops 12% as Bottom Line Retreats to $1.1B
PYPL sits 42% above its 52-week low of $38.46.
Summary
PayPal's Q2 GAAP earnings fell 12% to $1.104B, or $1.25 per share, from $1.261B a year ago, missing last year's $1.29 EPS. Revenue rose 4.8% to $8.682B, but the profit decline stands out against a backdrop of aggressive cost-cutting and a $53B takeover bid from Stripe and Advent. Adjusted EPS of $1.38 provides some cushion, but the headline retreat in bottom-line profitability could pressure the stock, especially after the 17% surge on the buyout news. The earnings miss may test the premium built into the takeover speculation. Watch for management commentary on the call regarding the bid and cost-savings progress.
At the time of this announcement, PYPL was trading at $54.80 on NASDAQ in the Finance sector, with a market capitalization of approximately $49.5B. The 52-week trading range was $38.46 to $79.50. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: dpa-AFX.