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PayPal (PYPL) Q4 Earnings to Benefit From Portfolio Strength

PayPal Holdings, Inc. PYPL is slated to report fourth-quarter 2022 results on Feb 9.

The company’s robust services have enabled it to maintain a deep and trusted relationship with merchants and consumers. Its two-sided platform helps develop direct financial relationships with customers and merchants.

The Total Payment Volume (TPV) for the fourth quarter is anticipated to reflect the impacts of all these factors. Notably, TPV is a key growth metric for PayPal’s top line.

The TPV in the last reported quarter improved 9% year over year on a spot rate basis and 14% on a currency-neutral basis to $336.97 billion. This was attributed to well-performing Venmo, which accounted for $63.6 billion of TPV.

For fourth-quarter 2022, the Zacks Consensus Estimate for TPV is pegged at $359.2 billion, suggesting growth of 5.8% on a year-over-year basis.

Click here to know how the company’s overall fourth-quarter performance is expected to have been.

PayPal Holdings, Inc. Price and Consensus

PayPal Holdings, Inc. Price and Consensus
PayPal Holdings, Inc. Price and Consensus

PayPal Holdings, Inc. price-consensus-chart | PayPal Holdings, Inc. Quote

Portfolio Strength: A Key Catalyst

PayPal’s continuous efforts toward strengthening the services portfolio are likely to have aided in gaining traction with customers in the fourth quarter despite the pandemic.

In the said quarter, the company unveiled passkeys for PayPal accounts in a bid to offer a more secure and simple way of making payments.

Further, PayPal rolled out a digital point-of-sale solution, the PayPal Zettle Terminal, in the United States to deliver an enhanced payment experience to small businesses and their customers.

This apart, robust Venmo is likely to have continued contributing well. The company’s TPV is likely to have benefited from Venmo’s strengthening monetization efforts.

Further, One Touch’s growing momentum among merchants on the heels of its robust mobile checkout services is expected to have driven growth in PayPal’s mobile TPV in the fourth quarter.

The company’s strengthening cryptocurrency efforts, along with the integration with Venmo and the expanding global footprint of its cryptocurrency service, are expected to have contributed well.

The growing momentum in the buy now, pay later solution of PayPal is likely to have benefited the quarterly performance.

Zacks Rank & Stocks to Consider

Currently, PayPal carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Computer & Technology sector are Agilent Technologies A, Arista Networks ANET and Asure Software ASUR. While Agilent Technologies sports a Zacks Rank #1 (Strong Buy), Arista Networks and Asure Software carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Agilent has gained 8.4% in the past year. A’s long-term earnings growth rate is currently projected at 10%.

Arista Networks has gained 6.1% in the past year. The long-term earnings growth rate for ANET is currently projected at 17.5%.

Asure Software has gained 51.9% in the past year. The long-term earnings growth rate for ASUR is currently projected at 23%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Agilent Technologies, Inc. (A) : Free Stock Analysis Report

Asure Software Inc (ASUR) : Free Stock Analysis Report

Arista Networks, Inc. (ANET) : Free Stock Analysis Report

PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report

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