After the 20% drop in PYPL since July, this may be a great opportunity to enter the stock on the dip, we see a recovery to old highs soon.
"We had an excellent quarter financially and operationally, reporting 19% revenue growth, more than 200 basis points of operating margin expansion, accelerating TPV growth and nearly 10 million net new active accounts. This quarter we also announced that we will be the first foreign payments platform to be licensed to provide online payment services in China, a very significant development that has the potential to meaningfully expand our addressable market," said Dan Schulman, President and CEO of PayPal.
Earnings highlights Source PR Newswire
Revenue of $4.38 billion; growing 19% on both a spot and foreign currency-neutral (FX-neutral or FXN) basis.
GAAP operating income of $0.7 billion, increasing 42%; non-GAAP operating income of $1.03 billion, increasing 30%.
GAAP operating margin of 15.9% with non-GAAP operating margin of 23.4%.
GAAP tax rate of 4.5%; non-GAAP tax rate of 11.1%.
GAAP EPS of $0.39, increasing 7%; non-GAAP EPS of $0.61, increasing 5%.
Cash flow from operations of $1.1 billion with free cash flow of $923 million.
Repurchased approximately 3.26 million shares of common stock, returning $350 million to stockholders.
Accessed public debt markets for the first time and raised $5.0 billion in senior fixed rate notes. PayPal used a portion of the proceeds to repay outstanding borrowings on its 364-day term loan credit facility of $2.5 billion and plans to use the remainder of the proceeds consistent with its capital allocation priorities.
Merchant Services volume grew 31% on an FX-neutral basis.
eBay Marketplaces volume declined 3% on an FX-neutral basis versus growth of 3% in Q3-18, and represented 8% of TPV for the quarter versus 11% a year ago.
Person-to-Person (P2P) volume grew 39% to $51 billion, and represented 28% of TPV.
Venmo processed more than $27 billion of TPV in the third quarter, growing 64%.
Average analysts price target $127 | Overweight
P/E ratio 44 high but acceptable in growth stocks.
Company profile
PayPal Holdings, Inc. engages in the development of technology platform for digital payments. Its solutions include PayPal, PayPal Credit, Braintree, Venmo, Xoom, and Paydiant products. It manages a two-sided proprietary global technology platform that links customers, which consist of both merchants and consumers, to facilitate the processing of payment transactions. It allows its customers to use their account for both purchase and paying for goods, as well as to transfer and withdraw funds. It enables consumers to exchange funds with merchants using funding sources, which include bank account, PayPal account balance, PayPal Credit account, credit and debit card or other stored value products. It offers consumers person-to-person payment solutions through its PayPal Website and mobile application, Venmo and Xoom. The company was founded in December 1998 and is headquartered in San Jose, CA.
"We had an excellent quarter financially and operationally, reporting 19% revenue growth, more than 200 basis points of operating margin expansion, accelerating TPV growth and nearly 10 million net new active accounts. This quarter we also announced that we will be the first foreign payments platform to be licensed to provide online payment services in China, a very significant development that has the potential to meaningfully expand our addressable market," said Dan Schulman, President and CEO of PayPal.
Earnings highlights Source PR Newswire
Revenue of $4.38 billion; growing 19% on both a spot and foreign currency-neutral (FX-neutral or FXN) basis.
GAAP operating income of $0.7 billion, increasing 42%; non-GAAP operating income of $1.03 billion, increasing 30%.
GAAP operating margin of 15.9% with non-GAAP operating margin of 23.4%.
GAAP tax rate of 4.5%; non-GAAP tax rate of 11.1%.
GAAP EPS of $0.39, increasing 7%; non-GAAP EPS of $0.61, increasing 5%.
Cash flow from operations of $1.1 billion with free cash flow of $923 million.
Repurchased approximately 3.26 million shares of common stock, returning $350 million to stockholders.
Accessed public debt markets for the first time and raised $5.0 billion in senior fixed rate notes. PayPal used a portion of the proceeds to repay outstanding borrowings on its 364-day term loan credit facility of $2.5 billion and plans to use the remainder of the proceeds consistent with its capital allocation priorities.
Merchant Services volume grew 31% on an FX-neutral basis.
eBay Marketplaces volume declined 3% on an FX-neutral basis versus growth of 3% in Q3-18, and represented 8% of TPV for the quarter versus 11% a year ago.
Person-to-Person (P2P) volume grew 39% to $51 billion, and represented 28% of TPV.
Venmo processed more than $27 billion of TPV in the third quarter, growing 64%.
Average analysts price target $127 | Overweight
P/E ratio 44 high but acceptable in growth stocks.
Company profile
PayPal Holdings, Inc. engages in the development of technology platform for digital payments. Its solutions include PayPal, PayPal Credit, Braintree, Venmo, Xoom, and Paydiant products. It manages a two-sided proprietary global technology platform that links customers, which consist of both merchants and consumers, to facilitate the processing of payment transactions. It allows its customers to use their account for both purchase and paying for goods, as well as to transfer and withdraw funds. It enables consumers to exchange funds with merchants using funding sources, which include bank account, PayPal account balance, PayPal Credit account, credit and debit card or other stored value products. It offers consumers person-to-person payment solutions through its PayPal Website and mobile application, Venmo and Xoom. The company was founded in December 1998 and is headquartered in San Jose, CA.
