PYPL
📉 PayPal reported mixed Q1 earnings, missing estimates on key metrics like payment volume ($417B vs $419B expected) and net revenue ($7.79B vs estimates).
📊 Adjusted earnings per share were $1.33, slightly below the $1.31 estimated by some, though above the $1.16 consensus mentioned. Transaction margin slightly beat expectations (37.5% vs 37.4% est.).
💸 Full-year guidance midpoint for free cash flow seems slightly below expectations, and CAPEX is projected higher than estimated, raising questions about spending efficiency.
@bernardodegarcia:
“Uy, we have PayPal earnings too, they are falling like flies, pim pam pum. Adjusted earnings $1.33 versus $1.16. Payment volume $417 billion estimated, $419 billion actual. Venmo okay. Net revenue $7.79 billion, which is below estimates. I think the most important thing is the payment volume, which reached $417 billion when $419 billion was expected. It’s a 4% drop, not terrible, but well. Earnings per share $1.29, $1.31 estimated, $1.22 actual. Transaction margin 37.5%, 38.0% estimated, 37.4% actual, this is good. Full-year guidance $4.95-$5 billion estimated, $5 billion actual. Transaction margin dollars $15-$15.2 billion, $15 billion actual, this is fine. Free cash flow $6.7 billion, $6 billion estimated. This isn’t so good because the midpoint is between $6.5 billion and this is $6.74 billion. And CAPEX $1 billion estimated, $919 million actual. I think here they should stop spending so much and start milking the cow, which is PayPal.”
Watch the exact part of the video where @bernardodegarcia talks about PayPal here:
Watch the video on YouTube
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