PayPal Earnings Top Estimates, CEO Schulman To Retire

PayPal Holdings (PYPL) on Thursday reported fourth-quarter earnings and revenue that topped views while total payment volume missed. PayPal stock fell as the company’s own outlook came in above expectations amid the announcement that Chief Executive Dan Schulman will retire as of Dec. 31, 2023.


For the quarter ended Dec. 31, 2022, however, PayPal earnings rose 12% from a year earlier to $1.24. The e-commerce company said revenue climbed 7% to $7.4 billion, edging by analyst estimates.

Analysts expected PayPal earnings of $1.20 a share on revenue of $7.39 billion. A year earlier, PayPal earned $1.11 a share on sales of $6.92 billion.

Total payment volume processed from merchant customers climbed 5% to $357.4 billion. Analysts had projected total payment volume of $360.38 billion.

Meanwhile, Schulman will continue to serve on the PayPal board of directors after he exits as CEO.

PayPal Stock: 2023 Guidance

For full-year 2023, PayPal forecast earnings per share of $4.87 at the midpoint of guidance, up roughly 18%. PayPal did not provide a 2023 revenue outlook.

“Surprisingly, no (2023) revenue outlook was provided,” Jefferies analyst Trevor Williams said in a note to clients.

Analysts had predicted full-year earnings of $4.79 on revenue of $29.89 billion. For full-year 2023, analysts estimate 9.5% total payment volume growth to $1.49 trillion.

PayPal stock fell 2.8% to 76.20 in extended trading on the stock market today.

San Jose, Calif.-based PayPal has evolved from online checkout to mobile shopping and person-to-person payments. Competition has heated up with Square-parent Block (SQ) and others.

Stock Buyback

After plunging 62% last year, PayPal stock has advanced 12% thus far in 2023 heading into the earnings report.

Meanwhile, the company announced a $15 billion share buyback program in August. About $4 billion of that was expected to be used up in 2022.

In addition, PayPal in January announced plans to cut 2,000 jobs, or about 7% of its workforce.

PayPal stock has retreated from an all-time high of 310.16 on July 26, 2021. Shares hold a Relative Strength Rating of only 23 out of a best-possible 99, according to IBD Stock Checkup

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.


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