Boosted By Sharp Jump in Mobile Payments, PayPal Shares Advance Amidst Rosy Outlook
Shares of PayPal Holdings Inc. took up by more than 4 percent in the extended session on Thursday after the mobile-payments company reported a better-than-expected third-quarter profit and upgraded its guidance for earnings through the rest of the year.
PayPal’s shares soared 4.03 percent to trade at $69.96 after the San Jose, California-based payments company said it earned $380 million of net income, or 31 cents a share in the third quarter, up from $323 million, or 27 cents a share, in the year-ago period.
For the three-month ended September, the PayPal reported adjusted earnings of $560 million, or 46 cents a share. The reading marked a rise of 32 percent compared to the same period last year and also beat analysts’ expectations calling for earnings of 39 cents a share on revenue of $3.565 billion.
Thanks to sharp growth in mobile payments whose volumes surged 54 percent during the last quarter compared with the year-ago period, to about $40 billion, PayPal witnessed its revenue jump 21.4 percent to $3.24 billion from $2.67 billion recorded in the same quarter last year.
PayPal also raised its guidance for the fiscal year 2017’s adjusted earnings to a range of $1.86 to $1.88 per share from $1.80 per share to $1.84 per share. Meanwhile, earnings are forecast to reach a range of 50 cents to 52 cents per share during the fourth quarter, which is in line with analysts’ estimate of earnings of 51 cents. Revenue is expected to come in between $12.92 billion and $12.98 billion.
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