PayPal Investors Rattled by Earnings Report. But Should They Be?
Expectations were high going into PayPal's (NASDAQ: PYPL) second-quarter earnings report Wednesday afternoon, and while the payment processor delivered on all the metrics that mattered, lowered full-year guidance sparked a sell-off. The stock initially fell more than 10% in after-hours trading, but was only down about 4.3% by Thursday afternoon.
Investors seemed to fear the worst from what they initially saw in the report. But look a little deeper into PayPal's results and one sees that the company is still squarely on the right track.
PayPal reported revenue of $4.31 billion, which is up 12% year over year and near the midpoint of management's guidance but just short of analysts' consensus estimate of $4.33 billion. The results include a 7% revenue adjustment -- similar to last quarter -- related to the sale of receivables last year to Synchrony Financial.
Quelle Fool.com
