Paypal Holdings Inc(NASDAQ: PYPL) in the first quarter of FY 17 has posted the total payment volume was $99 billion in the quarter, up 23% from a year ago. The number of active merchant accounts on PYPL has increased to 16 million by the end of March. This is due to the focus on more partnerships and mobile. There is 32 payments transactions per active account on a trailing twelve months basis, up 12% were on mobile devices and that mobile payment volume grew 51%. The improvement is due to its Venmo social payment system, which opens to the merchants that accept PayPal as a mobile payment option, and which is set to begin on a beta test basis. Venmo, which is particularly popular with the millenial generation, has processed $6.8 billion of total payment volume, more than doubling its volume from a year ago. At the end of the first quarter, there were 203 million active customer accounts, including 16 million merchant accounts.
Paypal Holdings in the first quarter of FY 17 has reported the adjusted earnings per share of 44 cents, beating the analysts’ estimates for the adjusted earnings per share of 41 cents. The company had reported the adjusted revenue growth of 17 percent to $2.98 billion in the first quarter of FY 17, beating the analysts’ estimates for revenue of $2.93 billion. PYPL expects in the second quarter of FY 17, the revenue in the range of $3.05 billion to $3.1 billion.
Paypal Holdings expects the full-year 2017 earnings in the range of $1.74 to $1.79 per share, with revenue ranging from $12.52 billion to $12.72 billion. Paypal has authorized a new stock repurchase program, under which the company may repurchase up to $5 billion in outstanding common stock. This program will become effective after completion of the company’s January 2016 stock repurchase program.
On the other hand, Paypal Holdings has recently announced an expansion of its relationship with Google and a partnership agreement with Wells Fargo. The company has also extended its partnership with Visa into the Asia-Pacific region. Further, in the 1Q Paypal Holdings has announced its agreement to acquire TIO Networks Corp. for approximately $233 million.
Paypal Holdings stock has risen 10.17% in a year (source: Google Finance). According to tipranks.com, 9 analysts has covered the stock while recommend a “Strong Buy”. Paypal Holdings has an average price target of $47.75, which is a further upside of 7.52%.