PayPal Holdings, Inc. (NASDAQ:PYPL) CEO says delays in product integration led to reduced full-year revenue forecast
PayPal Holdings Inc. reported better-than-expected second quarter profit Wednesday, even after accounting for investment benefits, but shares fell in after-hours trading after the company lowered its full-year revenue outlook.
Chief Executive Dan Schulman told MarketWatch that the reduced outlook was the result of delayed partner implementations.
PayPal PYPL, +0.90% now models full-year revenue growth of 14% to 15% at current spot rates. Its prior forecast called for growth of 16% to 17%. Schulman said he was confident that PayPal would eventually realize impact from the partnerships subject to implementation delays, saying the revenues “are just a matter of when, not if.”
Shares were down 7% in after-hours trading.
For the second quarter, posted net income of $823 million, or 69 cents a share, up from $526 million, or 44 cents a share, a year earlier.
Adjusted earnings per share climbed to 86 cents from 58 cents a year earlier, and came in ahead of the FactSet consensus of 69 cents. That estimate largely didn’t take into account PayPal’s disclosure from earlier in the month stating that the company expected a positive earnings impact of 14 cents stemming from investment benefits, compared to the 1 cent impact the company forecast when it issued its outlook months earlier. The company invested in MercadoLibre Inc. MELI, +3.96% earlier in the year.
For the third quarter, PayPal expects $4.33 billion to $4.38 billion in revenue and 69 cents to 71 cents in adjusted EPS. The FactSet consensus calls for $4.44 billion and 70 cents, respectively.
PayPal’s results come a day after payments peer Visa Inc. V, +1.34% topped earnings expectations and spoke of its own partnership with MercadoLibre Inc. Its shares gained about 1% in Wednesday’s session.
PayPal shares have jumped 44% so far this year, as the S&P 500 SPX, +0.47% has risen 20%.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 112.28.
The projected upper bound is: 126.07.
The projected lower bound is: 117.11.
The projected closing price is: 121.59.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 59.4512. This is not an overbought or oversold reading. The last signal was a buy 2 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 63.40. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 58 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 82. This is not a topping or bottoming area. The last signal was a sell 6 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 3 period(s) ago.
Rex Takasugi – TD Profile
PAYPAL HOLDI closed up 1.080 at 121.300. Volume was 55% above average (neutral) and Bollinger Bands were 5% wider than normal.
Open High Low Close Volume___
120.000 121.330 118.930 121.300 8,969,808
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 119.89 115.06 98.39
Volatility: 16 25 39
Volume: 5,091,575 5,344,724 7,714,914
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
PAYPAL HOLDI is currently 23.3% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of PYPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on PYPL.O and have had this outlook for the last 31 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.