PayPal Shares Fall After Results Fail to Impress

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PayPal Holdings

shares were falling in late trading Wednesday after the payments platform’s results failed to impress Wall Street.

The company reported non-GAAP earnings of $1.16, edging out expectations at $1.15 a share, according to FactSet. Revenue of $7.3 billion topped expectations at $7.27 billion. Total payment volume of $376.5 billion was ahead of estimates at $368.87 billion.

PayPal shares (ticker: PYPL) were down 6.7% in after-hours trading.

Jefferies analyst Trevor Williams, who rates the stock at Hold with a $75 price target, believes investors are homing in on a decline in transactional gross profit that was below expectations. He also notes the transactional take rate declined to 1.74%, compared with expectations of 1.79%.

For the third quarter, the company expects revenue to hit $7.4 billion. It forecasts non-GAAP earnings to be between $1.22 a share and $1.24 a share. The FactSet consensus forecasts recently sat at $1.21 a share and $7.33 billion, respectively.

“We have high confidence that our business is on the right path and we’re seeing clear signs that the investments we’ve made are paying off,” CEO Dan Schulman said in the earnings release.

Write to Connor Smith at connor.smith@barrons.com