PayPal Slips 25% As Quarterly Results, Outlook Fall Shy Of Estimates

Shares of PayPal Holdings, Inc. (PYPL) are falling more than 25% in the morning trade on Wednesday after the company’s first-quarter as well as full-year earnings outlook fell short of analysts’ view.

For the first quarter, the company expects revenue to grow nearly 6% on a spot and FXN basis, and adjusted EPS to be about $0.87. On average, 31 analysts polled by Thomson Reuters expect the company to report earnings of $1.16 per share on revenue growth of 11.8%.

For the full-year, revenue is expected to grow in the range of 15%-17% on a spot and FXN basis, and adjusted earnings per share to be in the range of $4.60-$4.75. The consensus estimate for earnings stands at $5.25 per share and for revenue growth at 17.8%.

The company reported net income of $801 million or $0.68 per share in the fourth quarter, compared with $1.567 billion or $1.32 per share in the same quarter a year ago.

Excluding one-time items, earnings were $1.319 billion or $1.11 per share. The consensus estimate was for $1.12 per share.

Revenue for the quarter increased to $6.918 billion from $6.116 billion last year.

PYPL, currently at $131.43, touched a new low of $129.01 this morning.

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