BANGALORE (Reuters) – PayPal disappointed investors with its forecast.
The US payment service provider announced on Wednesday after the market closed that it expected its adjusted profit to stagnate for the current year. As in the previous year, the company expects $5.10 per share. Paypal shares fell by around five percent in after-hours trading. The reason for the weak outlook is share-based compensation expenses and associated taxes as well as a burden from the restructuring. In the fourth quarter, the company beat Wall Street estimates due to strong holiday sales. PayPal reported adjusted earnings of $1.48 per share. Analysts on average had expected $1.36 per share. Sales rose by nine percent after adjusting for currency effects to eight billion dollars.
(Report by Manya Saini, written by Birgit Mittwollen.; Edited by Hans Busemann; If you have any questions, please contact our editorial team at [email protected] (for politics and economics) or [email protected] (for companies and markets).)