The payment service provider PayPal has opened its books and presented the results for the past quarter and the full year.
In the fourth quarter, PayPal’s results went better than expected: Earnings per share of $1.53 were above analysts’ estimates of $1.29 per share. In the same period last year, PayPal recorded EPS of $1.11.
Quarterly sales also improved from $8.33 billion in the same period last year to now $8.7 billion. Experts had previously expected sales of $8.79 billion.
For the full year, PayPal earned $5.41 per share, more than the previous year ($3.99 per share). Analysts had expected earnings to jump to $5.36 per share for the 2025 financial year. Sales were $33.2 billion, compared to $31.79 billion in the previous year and expectations of $33.27 billion.
PayPal boss has to give up after profit disappointment
The US payment service provider PayPal is replacing its boss after a weak quarter and a missed outlook. At the behest of the board of directors, the previous HP boss Enrique Lores will replace Alex Chriss from March, as the company announced on Tuesday in San Jose, California. The control committee had carried out a detailed analysis and the group had not made enough progress in comparison to the competition and the industry, the reason given was. Chriss has been running the business since September 2023. At the same time, PayPal shocked investors with its figures for the last quarter.
PayPal increased sales in the three months to the end of December by four percent year-on-year to $8.7 billion, and adjusted earnings per share rose three percent to $1.23.
After the group raised its profit target twice over the course of the year, PayPal now missed the forecast range for adjusted earnings per share for the year. Analysts had also expected more.
For the new year, management expects a decline in earnings per share in the mid-single-digit percentage range; Adjusted for special items, it is likely to either decline by a low single-digit percentage or rise slightly.
Weak growth causes PayPal price to collapse
Investors reacted with horror to PayPal’s quarterly balance sheet in pre-market US stock trading. On the NASDAQ, the payment service provider’s shares temporarily fell to their lowest level in almost nine years before the trading session. PayPal shares were temporarily 16.76 percent lower at $43.57 in trading on the NASDAQ. In its wake, the shares of European competitor Adyen also fell by 4.49 percent to 1,208.80 euros.
Editorial staff at finanzen.net with material from dpa-AFX
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