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PayPal earnings: what to look for from PYPL

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Digital payments platform PayPal (NASDAQ: PYPL) will be reporting earnings this Tuesday before the bell. Here’s what investors should know.

PayPal beat analysts’ revenue expectations last quarter, reporting revenues of $8.68 billion, up 4.8% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ transaction volumes estimates.

Is PayPal a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting PayPal’s revenue to grow 3.4% year on year, slowing from the 7.3% increase it recorded in the same quarter last year.

PayPal Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. PayPal has missed Wall Street’s revenue estimates multiple times over the last two years.

With PayPal being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unfold for financial services stocks. However, investors in the segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. PayPal is up 4.7% during the same time .

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