PayPal, the payments company based in San Jose, Calif., is set to release its fourth-quarter results on Wednesday after the market closes. Here’s a summary of what you should keep an eye on:
Net Income
According to FactSet, PayPal is expected to report net income of $1.29 billion for the quarter, a significant increase from $921 million in the same period last year.
Revenue
FactSet also predicts that PayPal will announce $7.88 billion in revenue for the quarter ended December 31, compared to $7.38 billion during the prior-year period.
Adjusted Earnings
Excluding one-time items, earnings are projected to be around $1.36 per share, as per FactSet.
Stock Performance
During the quarter, PayPal’s stock price rose approximately 5.1% and is currently trading at $62.85.
What to Watch
- Possible Layoffs – Investors will be interested in whether PayPal will initiate additional layoffs. In January, the company announced plans to reduce its workforce by 9% this year. According to Chief Executive Alex Chriss, this restructuring is aimed at optimizing the business and enhancing customer satisfaction.
- Investor Sentiment – Although PayPal’s latest product enhancements were not well-received by investors, recent midday trading shows a 2% increase in shares. The company aims to maintain this positive momentum with its quarterly results and may highlight its latest AI-driven product developments.
- Strategic Framework and FY24 Outlook – Analysts at J.P. Morgan expect PayPal’s strategic framework and outlook for FY24 to garner significant attention. However, limited visibility into initial disclosures is anticipated due to the company’s recent leadership changes. The analysts advise patience as underlying trends may take time to improve.
