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DJ PayPal Up 6.7% After 4Q Earnings and FY 2021 Guidance

· 02/04/2021 15:20

By Michael Dabaie

PayPal Holdings Inc. shares were up 6.7% to $268.67 in afternoon trading.

The digital payment company after the market close Wednesday reported fourth quarter total payment volume of $277 billion, up from $199.4 billion a year earlier. FactSet consensus had been for about $268 billion.

Revenue was $6.12 billion, up from $4.96 billion in the year-ago period. FactSet consensus was for $6.09 billion.

Adjusted EPS was $1.08, beating FactSet consensus for $1.00.

For fiscal 2021, the company said it expects total payment volume to grow in the high 20s on a percentage basis revenue to be up 19% at current spot rates to $25.5 billion.

The company guided for GAAP EPS of $3.20, compared to $3.54 in fiscal 2020, which benefited from $1.24 in net gains on strategic investments. PayPal said it sees adjusted EPS up 17%.

The company said it expects 50 million net new active accounts to be added to PayPal's platform in fiscal 2021.

"PayPal's net revenue and EPS growth projections for FY21 were in line with ours, with higher absolute EPS driven by the higher baseline," Citi said in an analyst note. Citi rates the stock Buy.

"While Q4 was helped by the recurring themes of 2020--the pull-forward of e-Commerce and the broadening of acceptance--PYPL is bringing an ambitious playbook to further capitalize on growth in 2021 and beyond," Susquehanna Financial said in a note.

"PayPal delivered against high expectations, showcasing modest 4Q revenue upside and in-line FY21 guidance despite very tough comps, demonstrating enviable high-teens organic growth at scale with acceleration likely in FY22," J.P. Morgan said. J.P Morgan raised its price target to $249 from $234 and rates the stock at Overweight.

"Pandemic aside, we give PayPal credit for making the right investments in tech & platforms, and putting new product leadership in place back in 2019 to make it possible for PayPal to better capitalize on the amplified shift to digital commerce," J.P. Morgan said in its analyst note.

Write to Michael Dabaie at michael.dabaie@wsj.com

(END) Dow Jones Newswires

February 04, 2021 15:20 ET (20:20 GMT)

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