PayPal jumps after reporting a beat on top and bottom lines, Venmo growth

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PayPal raised fourth-quarter earnings guidance to a range of between 65 and 67 cents and increased quarterly revenue guidance, both in line with analysts’ expectations, according to Refinitiv. It also upped its full-year earnings guidance to a range of between $2.38 and $2.40 per share, above analysts’ consensus expectations of $2.34 per share.

Before the earnings report Thursday, the company announced new features and an expansion of its existing partnership with American Express, which also reported earnings after the bell. American Express customers will now be able to send money via Venmo or PayPal directly from their Amex mobile app, pay credit card bills with existing Venmo balances, and use Amex Membership Rewards points for PayPal purchases. Earlier in October, it also announced a partnership with Walmart to incorporate PayPal money services at the retail giant’s stores.

Earlier this year, the company announced a $2.2 billion deal to buy European payments start-up iZettle, which prior to the announcement had been planning on going public on the Nasdaq in Stockholm. PayPal has also made deals to buy Hyperwallet, Jetlore and Simility in 2018.

“We will continue to leverage acquisitions to strengthen our two-sided platform and maintain our position as the leading global open platform for digital payments,” Schulman said on the earnings call.

PayPal saw some weakness in eBay transaction volumes, which made up 11 percent of total transaction volume, down from 13 percent a year ago.

Programming Note: For more on PayPal, watch CFO John Rainey’s interview on “Mad Money” tonight at 6 p.m. ET.

2018-10-18 19:33:00

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