PayPal Earnings Beat Expectations. Its Stock Is Dropping.

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Updated July 28, 2021 5:03 p.m. ET / Original July 28, 2021 4:35 p.m. ET

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A motion is posted extracurricular of the PayPal office successful San Jose, California.

Justin Sullivan/Getty Images

PayPal banal was tumbling aft the payments institution bushed second-quarter net forecasts but offered below-consensus guidance.

PayPal reported an adjusted nett of $1.15 a share, beating forecasts for $1.13 connected income of $6.24 billion, missing expert estimates for $6.27 billion. PayPal besides said it would gain $1.07 a stock successful the 3rd quarter, beneath estimates for $1.14, portion income guidance of $6.15 to $6.25 cardinal came successful shy of expectations for $6.43

“3Q outlook volition thrust the narrative, with revenues guided ~3.5% beneath Street ests. and EPS ~6% below,” writes Jefferies expert Trevor Williams.

PayPal highlighted the interaction of eBay ‘s modulation to a “managed payments” strategy arsenic 1 root of slower growth. TPV maturation was 40% with eBay, 48% without out, portion income grew astatine a 32% clip without eBay versus 19% with.

Still, that wasn’t capable for the banal market. Shares of PayPal were disconnected 5.8% to $284.50 astatine 4:58 p.m. successful after-hours trading.

Write to Ben Levisohn astatine ben.levisohn@barrons.com

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