Paypal drops on light revenue forecast for Q4

PayPal shares fell more than 5% in after-hours trading, despite beating earnings and revenue expectations for the third quarter, as the company’s Q4 revenue estimate came in behind analysts’ expectations.

Here’s what PayPal reported:

• Earnings per share (EPS): $1.08 per share, ex-items, vs. 96 cents expected, according to a Refinitiv survey of analysts
• Revenue: $6.85 billion, vs. $6.82 billion expected, according to Refinitiv

The company estimated Q4 revenues to come in at $7.38 billion, which is less than the $7.74 billion consensus expectations, according to analysts surveyed by Refinitiv

PayPal raised EPS guidance for the full fiscal year, saying it’s benefited from “ongoing productivity initiatives.” It expects to add 8 to 10 million net new active users in the fiscal year.

The company said it’s working with Apple to enhance its offerings for PayPal and Venmo, including by letting U.S. merchant customers accept contactless payments through their mobile wallets and adding PayPal and Venmo network-branded credit and debit cards to the Apple Wallet.

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