PayPal shares rise on strong 4th-quarter results
SAN JOSE, Calif. (AP) — Shares of PayPal Holdings Inc. rose in late trading Wednesday after the payments company reported strong quarterly results in its second quarter as an independent company on continued demand for its payments services.
The San Jose, California-based company spun off from e-commerce company eBay in July. It’s been benefiting from the shift to online and mobile commerce, as more consumers shop online. The company said its active account base rose nearly 4 percent to 179 million.
For the fourth quarter ended Dec. 31, PayPal said net income rose 28 percent to $367 million, or 30 cents per share, from $286 million, or 23 cent per share last year. Earnings, adjusted for one-time gains and costs, came to 36 cents per share.
The results surpassed Wall Street expectations. The average estimate of 19 analysts surveyed by Zacks Investment Research was for earnings of 34 cents per share.
Revenue rose 17 percent to $2.56 billion from $2.56 billion, also surpassing Street forecasts. Thirteen analysts surveyed by Zacks expected $2.51 billion.
PayPal also said its board authorized the repurchase of up to $2 billion in stock.
For the year, the company reported profit of $1.23 billion, or $1 per share. Revenue was reported as $9.25 billion.
For the current quarter ending in April, PayPal expects its per-share earnings to range from 34 cents to 36 cents. Analysts expect 35 cents per share, according to FactSet.
The company said it expects revenue in the range of $2.47 billion to $2.52 billion for the fiscal first quarter. Analysts expect $2.47 billion.
PayPal expects full-year earnings in the range of $1.45 to $1.50 per share, with revenue ranging from $10.5 billion to $10.7 billion. Analysts expect $1.50 per share on revenue of $10.68 billion.
PayPal shares have fallen 13 percent since the beginning of the year.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on PYPL at http://www.zacks.com/ap/PYPL
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