"Fintech giant PayPal (PYPL) is scheduled to announce its third-quarter earnings on October 28. PYPL stock has declined 18.3% year-to-date. While there is optimism about the company's vast network and continued shift to digital payments, many analysts are cautious about PayPal stock due to significant competition and macro uncertainties. Wall Street expects PayPal to report earnings per share (EPS) of $1.20, in line with the prior-year quarter's bottom line."
"Meanwhile, revenue is expected to rise 5% year-over-year to $8.24 billion. PayPal has exceeded the Street's earnings expectations for five consecutive quarters. Investors will look forward to more details on the company's recently announced collaboration with Google's parent Alphabet (GOOGL) as well as the prospects for its newly launched PayPal Ads Manager, an advertising platform to help merchants turn their online traffic into revenue."
"Earlier this month, Citizens analyst Andrew Boone reiterated a Hold rating on PayPal stock with a price target of $100. The 5-star analyst views PayPal Ads as a medium-term opportunity as the company builds out partnerships. He expects the ramp in advertising revenue to contribute significantly to the overall bottom line. Meanwhile, Truist analyst Matthew Coad lowered his price target for PayPal stock to $65 from $68 and retained a Sell rating in a preview note on Q3 earnings."
PayPal will report third-quarter results on October 28, with shares down 18.3% year-to-date. Wall Street consensus expects EPS of $1.20 and revenue of about $8.24 billion, a roughly 5% year-over-year increase. PayPal has beaten EPS estimates for five straight quarters. The company announced a collaboration with Alphabet and launched PayPal Ads Manager to help merchants monetize traffic. Analysts remain cautious due to strong competition and macroeconomic risks. Citizens reiterated a Hold at a $100 target and views ads as a medium-term opportunity, while Truist trimmed its target to $65 and maintained a Sell rating, citing tougher comparisons ahead.
Read at TipRanks Financial
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