paypal next earnings: What Investors Should Know About PYPL’s Upcoming Financial Performance

Unpacking PYPL: What Latest Earnings Data and Analyst Insights Tell Us

Welcome back, aspiring investors and seasoned traders! As you navigate the dynamic world of financial markets, understanding a company’s earnings report is one of the most crucial skills you can develop. It’s like getting a detailed health check-up for the business you might invest in. Today, we’re going to put this skill into practice by looking closely at PayPal Holdings, Inc., trading under the ticker PYPL on the NASDAQ.

We know you’re keen to stay informed, especially when it comes to upcoming corporate milestones. A key event investors always watch for is the next earnings announcement date. It sets the calendar for when we receive the latest detailed update on a company’s performance. So, let’s dive into what we currently know about PYPL’s earnings picture, starting with that all-important date.

Waiting Game: The Status of the Next PYPL Earnings Date

For those of you tracking PayPal’s future earnings announcements, here’s the current situation: the specific date for the next quarterly earnings report from PayPal Holdings, Inc. has not yet been officially scheduled or announced. According to data provided by our vendor, Zacks Investment Research (via NASDAQ), the upcoming earnings report date remains unavailable at this time.

This isn’t unusual; companies typically announce their earnings dates a few weeks in advance. What this means for you as an investor is that you’ll need to keep an eye out for official announcements from PayPal or reliable financial news sources. Knowing this date is critical because it often precedes increased stock volatility and provides a deadline for you to complete your analysis before the information is public.

Reviewing the Latest Performance: A Look Back at PYPL’s Q1

While the next date is pending, we can gain significant insight by examining PayPal’s most recent financial results. The company last released its quarterly earnings report for the first quarter of 2024 (1Q’24) on Tuesday, April 29th. This report gives us a concrete picture of how the company performed recently.

Let’s break down the key figures from that report. PayPal, a leading credit services provider and digital payments platform, reported Earnings Per Share (EPS) of $1.33 for the quarter. This figure is particularly noteworthy because it topped the consensus estimate of $1.16, exceeding analyst expectations by a healthy $0.17 per share. An EPS beat is often viewed positively by the market, suggesting the company’s profitability exceeded what experts were forecasting.

• PayPal reported an EPS of $1.33, beating analyst estimates.
• Revenue for the quarter was $7.79 billion, slightly below estimates.
• Year-over-year revenue growth was 1.2%.

On the revenue side, the firm reported revenue of $7.79 billion for the quarter. This compared to analyst estimates which were slightly higher, at $7.84 billion. While they narrowly missed the consensus revenue figure, it’s important to look at the growth trend. PayPal’s revenue for the quarter was up 1.2% on a year-over-year basis. Modest revenue growth combined with a significant EPS beat can sometimes indicate effective cost management or a shift towards higher-margin activities, which translates top-line revenue into stronger bottom-line profit (EPS).

Understanding Analyst Sentiment and Future Earnings Expectations

Beyond the historical performance, analysts provide valuable context by offering their views on the company’s future prospects. Following the Q1’24 earnings, analysts have updated their models and ratings for PYPL stock. According to MarketBeat data, the stock presently holds an average rating of “Hold”.

What does a “Hold” consensus mean? It typically suggests that analysts, on average, believe the stock is fairly valued at its current price and recommend investors neither buy more shares nor sell their existing ones. The consensus rating is derived from a mix of individual analyst recommendations. For PYPL, this mix includes 19 Buy ratings, 15 Hold ratings, 3 Sell ratings, and 1 Strong Buy rating. This distribution shows a split view, with slightly more analysts leaning towards positive or neutral stances than negative ones.

Analysts also provide price targets, which are their forecasts for where the stock price might trade over a specific future period, usually 12 months. The consensus target price for PYPL stock is $83.42. Comparing the current stock price to the consensus target price gives you an idea of the potential upside or downside analysts see from the current trading level. A target price significantly above the current price might suggest analysts expect the stock to appreciate, while one below might signal anticipated declines.

Looking further ahead, analysts also forecast future earnings. For the current year, analysts collectively forecast that PayPal Holdings, Inc. will post 5.03 EPS. This forecast provides investors with an expectation of the company’s profitability for the full fiscal year and is a key figure used in various valuation models, such as the Price-to-Earnings (PE) ratio or the Price-to-Earnings to Growth (PEG) ratio.

PYPL Stock Performance Snapshot and Key Valuation Metrics

Now, let’s look at how the market has been valuing PayPal. As of mid-day on a recent Wednesday, PYPL stock was trading at approximately $76.37, showing a modest increase of around 1.4% for that trading session. It’s important to remember that stock prices fluctuate constantly, but this gives us a recent point of reference.

Trading volume can also offer clues. The recent trading volume of around 3.03 million shares was significantly lower than the stock’s average session volume, which stands at approximately 10.86 million shares. Lower volume days can sometimes indicate less market conviction behind the price movements, though interpreting volume requires looking at trends over time and in conjunction with price action.

Beyond the price itself, several key financial metrics help us understand the company’s size, valuation, and financial health. PayPal has a market capitalization of roughly $74.21 billion. Market cap is calculated by multiplying the current stock price by the total number of outstanding shares, representing the total market value of the company.

The Price-to-Earnings (PE) ratio is a common valuation metric, showing how much investors are willing to pay for each dollar of a company’s earnings. PYPL has a PE ratio of approximately 17.07. A company’s PE ratio is often compared to its industry peers or its own historical average to determine if it is relatively overvalued or undervalued. For context, a PE ratio of 17.07 suggests investors are paying about 17 times its current earnings per share.

Another useful metric, especially for growth companies, is the Price-to-Earnings to Growth (PEG) ratio. It relates the PE ratio to the expected future earnings growth. PYPL’s PEG ratio is approximately 1.23. A PEG ratio of 1 is often considered fair value for a growth stock (PE equals the growth rate), while values above 1 might suggest the stock is relatively expensive compared to its growth prospects, and values below 1 might suggest it’s undervalued. A PEG of 1.23 suggests the valuation is roughly in line with or slightly above its expected growth rate.

Understanding the stock’s volatility relative to the overall market is also key. This is measured by Beta. PYPL has a Beta of approximately 1.45. A Beta greater than 1 means the stock tends to be more volatile than the market; specifically, a Beta of 1.45 suggests that for every 1% move in the broader market, PYPL stock tends to move about 1.45% in the same direction. Higher Beta stocks can offer greater potential gains but also come with higher risk during market downturns.

Technical Signals: Moving Averages as Indicators

For traders who incorporate technical analysis, observing a stock’s price action relative to its moving averages can provide insights into trends. The 50-day moving average and the 200-day moving average are two widely followed indicators. These lines smooth out price data to show the average price over a specified period, helping to identify trends and potential support or resistance levels.

PYPL’s 50-day moving average is currently around $70.99, and its 200-day moving average is around $74.38. With the stock recently trading at $76.37, it is currently trading above both its 50-day and 200-day moving averages. When a stock is trading above these key moving averages, especially the 200-day, it is often seen as a bullish signal by technical analysts, suggesting that the intermediate and long-term price trends are currently positive.

However, it’s crucial to remember that moving averages are lagging indicators; they reflect past price action. While they can highlight existing trends, they don’t predict future movements with certainty. Technical analysis is best used in conjunction with fundamental analysis, which we’ve been discussing through the earnings data and valuation metrics.

Balance Sheet Health: Examining Debt and Liquidity

A company’s balance sheet provides a snapshot of its assets, liabilities, and equity. Understanding metrics like the Debt-to-Equity (D/E) ratio is vital for assessing financial risk. The D/E ratio compares a company’s total liabilities to its shareholder equity, showing how much debt the company is using to finance its assets relative to the value of shareholders’ investments. A high D/E ratio can indicate higher financial leverage and potentially higher risk if the company struggles to service its debt obligations.

PayPal has a Debt-to-Equity ratio of approximately 0.56. This means for every dollar of shareholder equity, the company has about 56 cents of debt. A D/E ratio of 0.56 is generally considered moderate to low, suggesting that PayPal is not excessively reliant on debt financing. This can be a positive sign of financial stability and lower risk compared to companies with very high leverage.

Other balance sheet metrics not explicitly provided in the summary but often relevant include current ratio and quick ratio, which assess short-term liquidity – the company’s ability to meet its short-term obligations. A strong balance sheet, indicated by moderate debt levels and sufficient liquidity, adds another layer of confidence for investors.

Understanding Insider Activity and Institutional Ownership

Who knows a company better than its own executives and directors? Insider activity – transactions made by corporate officers, directors, and significant shareholders – is often monitored by investors for clues about the company’s health and future prospects. While insider buying can signal confidence, insider selling can sometimes raise concerns, though there can be many reasons for insiders to sell shares (e.g., diversification, exercising options, personal expenses) that are not related to a negative outlook for the company.

Recent data indicates some insider selling activity at PayPal. Specifically, insider Suzan Kereere sold 4,162 shares, and EVP Diego Scotti sold 3,839 shares in early June. Over the last three months, insiders have sold a total of 11,796 shares of company stock valued at $863,028. While this represents a notable dollar amount, it’s important to put it into context relative to the total shares outstanding and the overall trading volume. A large amount of selling by multiple key insiders over a short period might be more concerning than sporadic selling by a few individuals.

Another significant factor in a stock’s ownership structure is institutional ownership. These are large entities like pension funds, mutual funds, hedge funds, and insurance companies that manage vast amounts of money. The percentage of a company’s stock owned by institutional investors can be seen as a vote of confidence from professional money managers.

Institutional investors and hedge funds collectively own a substantial portion of PayPal’s stock, holding 68.32% of the company’s shares. High institutional ownership can suggest that sophisticated investors see long-term value in the company. Furthermore, tracking changes in institutional holdings (e.g., whether they were increasing or decreasing positions in the prior quarter, Q4) can provide insight into recent shifts in professional sentiment. Firms like Brighton Jones LLC, Revolve Wealth Partners LLC, Fisher Asset Management LLC, Smartleaf Asset Management LLC, and Norden Group LLC are examples of institutions that may hold significant positions.

Connecting the Business Model to Performance Data

To fully appreciate the financial metrics, it helps to understand PayPal’s core business. PayPal operates a technology platform that facilitates digital payments globally. This includes its core PayPal services, Venmo, and Braintree, among others. Its business relies on transaction volumes, fees, and expanding its user base and merchant network.

• Core services include PayPal, Venmo, and Braintree.
• Revenue growth reflects overall platform activity.
• Strategic partnerships are crucial for future growth.

The 1.2% year-over-year revenue growth reflects the overall activity on its platform, while the EPS beat suggests the company was effective in managing its operating costs or improving the profitability of its transactions despite relatively modest top-line growth. Staying competitive in the rapidly evolving digital payments landscape requires continuous innovation and strategic partnerships.

A recent press release mentioned an expanded collaboration with Norwegian Cruise Line Holdings. Such partnerships are crucial for growth, extending PayPal’s reach and utility to new customer segments and transaction types. As an investor, you should look for how these collaborations contribute to future revenue and earnings growth, which would impact metrics like the PEG ratio and analyst forecasts.

Looking Ahead: Interpreting the Signals

So, what can we take away from all this data? While the exact date for PayPal’s next earnings report is currently unknown, the information from the Q1’24 earnings results, combined with analyst views and market metrics, paints a detailed picture for investors to consider.

The EPS beat in Q1 was a positive sign, demonstrating profitability exceeded expectations. However, the revenue growth was relatively modest at 1.2% YoY, indicating that expanding the top line might be more challenging than managing costs. The analyst consensus of “Hold” with a target price suggesting some upside from current levels indicates a cautious yet not entirely negative outlook from the professional community.

Valuation metrics like the PE of 17.07 and PEG of 1.23 suggest the stock is reasonably valued relative to its expected earnings and growth. The moderate Beta indicates above-average market sensitivity, and the low Debt-to-Equity ratio points to a solid balance sheet.

Recent insider selling warrants attention but should be viewed in context, while high institutional ownership provides a level of professional validation for the stock. The core business in digital payments remains relevant, and strategic collaborations are key to future growth.

As you process this information, remember that investing involves risk. No single data point tells the whole story. You should always conduct your own thorough research, considering the company’s long-term strategy, competitive landscape, macroeconomic factors, and your own investment goals and risk tolerance. Keep an eye out for that crucial announcement of the next PYPL earnings date, as the results released then will provide the next major catalyst for the stock’s movement.

We’ve covered a lot of ground today, moving from the simple status of the next earnings date to diving into detailed financial metrics and market sentiment. Our goal is always to equip you with the knowledge to understand these complex pieces of information and fit them together to form a clearer picture of your potential investments. Stay informed, stay analytical, and keep learning!

paypal next earningsFAQ

Q：When is the next earnings announcement for PayPal?

A：The specific date for the next earnings announcement has not yet been scheduled or announced.

Q：What was PayPal’s recent EPS?

A：PayPal reported an EPS of $1.33 for Q1 2024, surpassing expectations.

Q：What do analysts think about PYPL stock?

A：Analysts have a consensus rating of “Hold” for PYPL, indicating it is fairly valued at its current price.