PayPal Collectibles (PYPL) reported mixed financial results for the June quarter as profits were lower than the previous year but topped the number of views as total payment volume missed estimates. PayPal stock rose on Tuesday as the company added $15 billion to its stock buyback program.
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Additionally, PayPal’s earnings guidance for the September quarter was in line with expectations, while revenue expectations came in just below expectations. The company said PayPal plans to save $900 million from cost-cutting moves in 2022.
PayPal, based in San Jose, California has announced the appointment of Blake Jorgenson as its new Chief Financial Officer. Jorgenson was the executive vice president of special projects for the video game company electronic arts (EA).
Also, PayPal confirmed that hedge fund Elliott Management has taken $2 billion from the company.
PayPal announced its earnings late Tuesday. PYPL stock is up 11.6% to 100.09 in extended trading on stock market today. In the regular Tuesday session, PayPal stock rose 1.2%.
PayPal’s earnings for the quarter ended June 30 were 93 cents a share, down 19% from a year earlier. The e-commerce company said revenue rose 10% to $6.8 billion.
Analysts expected PayPal earnings of 87 cents per share on revenue of $6.78 billion. A year ago, PayPal earned $1.15 per share on $6.24 billion in sales.
PayPal Stock: Payment Volume Light
In the second quarter, total volume of payments processed from commercial customers increased 13% to $339.8 billion. Analysts had expected total payments of $342.83 billion.
For the current quarter ending in September, PayPal forecast earnings per share of 95 cents, in line with estimates. PayPal forecast revenue of $6.8 billion, below estimates of $7.02 billion.
With e-commerce booming during the coronavirus pandemic, shares in PayPal have soared. But PayPal stock is down about 71% from its all-time high of 310.16 on July 26, 2021.
according to IBD stock check.
ex-parent ebay (ebay), which separated from PayPal in 2015, transferred payment processing from PayPal to Adyen in the Netherlands.
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