Paypal Holdings Inc (NASDAQ: PYPL) stock falling over 5.5% on 25th July, 2019 (As of 9:45 am GMT-4; Source: Google finance) after the company posted mixed results for the second quarter of FY 19 and lowered its full-year revenue outlook. For the second quarter, the company posted the net income of $823 million up from $526 million, a year earlier.
PYPL in the second quarter of FY 19 has reported the adjusted earnings per share of 86 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 had invested in MercadoLibre Inc. earlier in the year.
The company had reported the adjusted revenue growth of 12 percent to $4.31 billion in the second quarter of FY 19, slightly missing the analysts’ estimates for revenue of $4.33 billion. Total payment volume jumped to $172 billion from $139 billion, meeting expectations of $172 billion. Venmo processed $24 billion in volume, while total peer-to-peer volume represented $46 billion. The company has added 9 million net new active accounts in the period.
PayPal now expects full-year revenue growth to be in the range of 14% to 15% at current spot rates. Its prior forecast called for growth of 16% to 17%. PayPal is expected to eventually realize impact from the partnerships subject to implementation delays. 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.
Meanwhile, in the second quarter, PayPal announced the PayPal Commerce Platform, a new solution designed to meet the specific needs of marketplaces, e-commerce solution providers, and crowdfunding platforms by bringing together a comprehensive set of technologies, tools, services, and financing solutions for businesses. Further, in July, PayPal’s Xoom product launched its international money transfer services in the UK and 31 other European markets. Customers across Europe can now use Xoom to send money, pay bills or reload phones to more than 130 markets internationally.
Additionally, PayPal extended its global partnership with Uber in the second quarter and announced plans to explore future commercial payment collaborations. PayPal also made a $500 million strategic investment in Uber.