PayPal Shares Jump After Earnings Beat
Shares of PayPal Holdings Inc. (PYPL) jumped more than 8% in after-hours trading, after the payment company reported third-quarter earnings that beat analysts’ forecasts.
PayPal, based in San Jose, Calif., announced that net income totaled $462 million, or 39 cents a share in the third quarter, up from $436 million, or 36 cents a share, a year earlier.
Earnings adjusted for stock compensation and other expenses climbed to 61 cents a share from 58 cents a year ago. The latest number far exceeded the 52-cent forecast by analysts polled by FactSet. The latest result included a 15-cent hit from unrealized losses on strategic investments.
PayPal’s revenue gained 19% to $4.38 billion, compared to analysts’ estimate $4.35 billion. Total payment volume rose to $179 billion from $143 billion, topping expectations of $177.4 billion.
The company’s stock traded at $104.85 in after-hours trading, up 8.5%.