PayPal Holdings Inc (NASDAQ:PYPL) shares are trading higher Wednesday after the company reported better-than-expected financial results and raised its earnings guidance.
PayPal said second-quarter revenue increased 9% year-over-year to $6.8 billion, which beat the estimate of $6.78 billion, according to data from Benzinga Pro. The company reported quarterly earnings of 93 cents per share, which beat the estimate of 68 cents per share.
Total payment volume reached $339.8 billion in the quarter, an increase of 9% year-over-year. PayPal said it added 400,000 net new accounts in the second quarter, bringing total active accounts up to 429 million, representing an increase of 6% year-over-year.
“We continue to gain share as we execute across our key strategic initiatives, even as we drive operational efficiency across our business,” said Dan Schulman, CEO of PayPal.
PayPal expects third-quarter revenue of $6.8 billion. Earnings are expected to be in an approximate range of 94 cents to 96 cents per share.
Full-year revenue is expected to be approximately $27.85 billion versus the estimate of $28.18 billion. PayPal also raised its full-year earnings guidance to an approximate range of $3.87 to $3.97 per share versus the estimate of $3.85 per share.
Related Link: Why PayPal Stock Is Rocketing Higher On Q2 Earnings: What You Need To Know About Guidance, Elliott Management And More
- Keybanc analyst Josh Beck maintained PayPal with an Overweight rating and raised the price target from $100 to $115.
- JMP Securities analyst David Scharf maintained PayPal with a Market Outperform rating and raised the price target from $100 to $120.
PYPL Price Action: PayPal has a 52-week high of $190.09 and a 52-week low of $67.58.
The stock was up 13.1% at $101.38 at time of publication.
Photo: courtesy of PayPal.