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PayPal shares rise on strong 4th-quarter results
Posted On Jan 27 2016
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“The quarter also marked the end of an extraordinary year during which we completed the spin-off of PayPal”, said eBay president and CEO Devin Wenig, in prepared remarks.
The San Jose, Calif.-headquartered corporation reported a net income of $477 million, or 39 cents per share (statement).
The company’s revenue was $2.32 billion in the fourth quarter ended December 31, flat with a year earlier. The consensus revenue forecast calls for $2.16 billion, well ahead of the top of eBay’s expected range. During the 2015 holiday shopping season, the Marketplace platform saw over 265 million transactions across 190 markets, as consumers around the world shopped for great deals and sought-after gifts.
The company processed 1.4 billion payment transactions, more than analysts’ estimate of 1.37 billion, according to FactSet StreetAccount. StubHub saw $1.2 billion in gross merchandise volume and recorded $232 million in revenue. The company grew its active account base by 6.6 million in the fourth quarter, ending the year with 179 million active customer accounts. The firm has maintained steady sequential growth in users of between 2% and 3% for several quarters. Revenue was reported as $8.59 billion. The company delivered strong operating and free cash flow on a continuing operations basis, generating $2.9 billion and $2.2 billion, respectively, during 2015.
eBay Inc.(eBay) is a global technology company. EBay said it earned an adjusted $600 million, or 50 cents a share, in the fourth quarter, compared with 55 cents a share in the year-ago period.
PayPal shares edged higher by as much as 5.73% to $33.40 per share in after-hours trading. Susquehanna Initiated eBay Inc on Jan 15, 2016 to “Positive”, Price Target of the shares are set at $34. The company issued revenue guidance of $10.5-10.7 billion, compared to the consensus revenue estimate of $10.68 billion. Revenue rose by 17% year-over-year to $2.6 billion, while analysts were expecting revenue of $2.5 billion. Check back later for our full analysis on PayPal’s fourth quarter earnings report!
