American payments system company PayPal Holdings Inc is set to post its third-quarter earnings report for the year after the opening bell on Thursday’s session. The company who posted positive earnings numbers during the previous quarter is expected to post another set of positive numbers for the third quarter which is set to send its shares trading higher.
PayPal shares which have jumped by 74% year to date and 48% this year so far has been projected to perform positively higher during the past three months as the company’s customer account transactions continue to rise along with their revenues from value-added services.
During the previous quarter, the company was able to deliver earnings of 46 cents per share beating analyst estimates of 43 cents per share. PayPal’s revenue then came at $3.14 billion higher than expectations of $3.09 billion. PayPal which rallied by 3% following their second-quarter earnings call also adjusted their full-year earnings guidance with their earnings per share expected to come at around $1.80 to $1.84 while their revenue is expected to range at $12.78 billion to $12.88 billion.
Analysts originally forecasted the revenue of PayPal to come at $12.72 billion on earnings of $1.78 per share. However, due to the company’s efforts in expanding its operations including reaching a number of partnerships internationally. PayPal has been also able to strike a deal with Baidu in China, therefore, expanding its reach in one of the biggest economies in the world.
PayPal’s market capitalization which has now reached $69.9 billion which is twice the market capitalization of eBay whose market capitalization stands at $38.8 billion. The payments company also has been able to establish itself as a reliable online payment system in the market since splitting from eBay more than two years ago.
PayPal shares which have an all-time high of $59.38 last July 20 has been able to outperform the S&P 500.
For the third quarter, PayPal which would be delivering its third-quarter results after the market close on Thursday would be expected to post a growth of 18% to 20% during the third quarter, close to that of their growth during the same quarter last year. PayPal’s non-GAAP earnings are expected to come at $0.42 to $0.44 per share representing a growth of 20% year over year.
Investors would also be focusing on the company’s active customer growth and the growth of per customer’s transactions. During the second quarter, the company posted 210 million active customer accounts. PayPal’s management expects to close the year with more than 220 million active customer accounts which is 10% higher than the previous year.
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