PayPal tops Q2 estimates and raises full-year forecast amid Stripe takeover bid
Shares in PayPal Holdings Inc. closed regular trading up 4% today after the payments company beat expectations on revenue and earnings in its second quarter and raised its full-year profit forecast, less than two weeks after a $53 billion buyout offer from Stripe Inc. and Advent International L.P. that its board considers too low.
For the quarter ended on June 30, PayPal reported adjusted earnings of $1.38 per share, down 1% from a year earlier, on revenue of $8.68 billion, up 5%. Analysts were expecting $1.28 per share on revenue of $8.47 billion. On an unadjusted basis, net income fell 12% to $1.1 billion, or $1.25 per share.
Total payment volume rose 10% to $486.4 billion and payment transactions rose 8% to 6.8 billion. Active accounts were up 0.3% year-over-year at 439 million, though the figure slipped by about 200,000 from the first quarter.
Profitability moved the other way. Adjusted operating income fell 8% to $1.5 billion. Adjusted operating margin contracted 248 basis points to 17.4%. Transaction margin dollars rose 1% to $3.9 billion. That is the number Chief Executive Enrique Lores has put at the center of his turnaround plan.
