PayPal company
PAYPAL
-1.63%
closure:0
opening:81.6
High:81.8
low:78.1
cycle:—
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reported earnings of $1.24 per share on revenue of $7.39 billion, while analysts had expected earnings of $1.2 per share ($4.09 for the full year) on revenue of $7.39 billion in Q4 2022. ($27.52 billion for the full year).
The company expects to post a profit of $4.87 per share in the coming year (expected growth of 18%), above analysts’ expectations for a profit of $4.75 per share. In the coming quarter, it expects to post a profit of $1.09 per share (mid-term), above the analyst consensus of $1.07 per share.
The analysts expect the company to bring in 7 billion dollars in the coming quarter and for the whole year they expect revenues of 29.9 billion dollars – that is, the analysts expect a further slowdown in its results in the coming quarter, against the background of the fear of sliding into a recession, but they also believe that this is a temporary weakness and that the company will grow again in the following quarters of the year. And yet, they reduced their estimates for the company’s revenue growth during 2023 from 14% to only 10%.
According to the company, the reason for these forecasts are “benefits from further improvement in increases – the layoffs the company announced last week – (expansion later in the article) an increase in interest rates and more.
At the same time, the company announced that CEO Dan Schulman plans to step down and that the company is looking for a replacement.
PayPal shares trade at a price of $78.4 and according to a market value of $89.5 billion. The stock has crashed by 73% since the peak it recorded in August 2021. During the last 12 months, the stock has erased 32% of its value.
Still, the analysts are bullish on the stock and expect an upside of 32% to an average target price of $103.3. Out of 44 analysts who reviewed the stock recently, 32 recommend buying the stock while 12 recommend ‘hold’.
Just a week ago, PayPal decided to lay off 7% of its workforce, which is about 2,000 employees, in order to reduce costs. In the letter that the CEO sent to the employees, he stated, “We have made significant progress and focused resources ahead of strategic priorities, but we still have work to do. We must continue to change accordingly as our customers and the competitive landscape evolve.”
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