3 Reasons to Be Optimistic About PayPal
Online payment giant PayPal (NASDAQ: PYPL) recently released its fourth-quarter and full-year earnings report, and the company's financial results were better than expected. PayPal's revenue of $4.96 billion grew by 17% year over year and came out ahead of analyst estimates, and the company's adjusted operating income of $1.2 billion grew by 28% compared to the prior-year quarter. Furthermore, PayPal recorded adjusted earnings per share of $0.86, 24% higher than the year-ago period.
PayPal also added 9.3 million active accounts during the fourth quarter, bringing its total to 305 million accounts, a 14% year-over-year growth. The company's total payment volume (TPV) -- the total dollar value of transactions successfully processed with PayPal -- was $199 billion during the fourth quarter, up 22% year over year.
Despite its strong results, investors weren't impressed with the company's first-quarter EPS guidance, which fell short of analysts' estimates, but even taking that into account, there are lots of reasons to purchase shares of the company. Here are three.
Source Fool.com
