PayPal Holdings Inc (NASDAQ:PYPL) reported better-than-expected sales for its first quarter on Tuesday.
PayPal reported fiscal first-quarter revenue growth of 9% year-over-year to $7.7 billion, beating the consensus estimate of $7.5 billion. The company reported quarterly adjusted EPS of $1.08 per share, missing analyst estimates of $1.22, according to data from Benzinga Pro.
Total payment volumes increased 14% year-over-year to $403.9 billion in the quarter.
"2024 remains a transition year and we are focused on execution – driving our key strategic initiatives, realizing cost savings, and reinvesting appropriately to position the company for consistent, high-quality profitable growth in the future." Alex Chriss, President and CEO, said.
PayPal expects second-quarter revenues to increase by 6.5%—7% foreign exchange neutral or revenue of $7.761 billion—$7.797 billion versus the consensus of $7.797 billion. It expects adjusted EPS to grow in the low double-digit percentage compared to EPS of $0.87 in the prior year's period and consensus of $1.21.
PayPal shares rose 1.4% to close at $67.92 on Tuesday.
These analysts made changes to their price targets on PayPal following earnings announcement.
- JMP Securities boosted the price target on PayPal from $70 to $82. JMP Securities analyst David Scharf maintained a Market Outperform rating.
- Baird raised the price target on PayPal from $70 to $77. Baird analyst Colin Sebastian maintained an Outperform rating.
- Stephens & Co. increased the price target on PayPal from $70 to $75. Stephens & Co. analyst Charles Nabhan maintained an Equal-Weight rating.
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