PayPal Rejected a $53 Billion Takeover Bid: Is the Stock Undervalued?
PayPal (NASDAQ:PYPL) reported second-quarter results that exceeded its expectations, citing growth in Venmo, credit products and Braintree, while raising full-year guidance for transaction margin dollars and non-GAAP earnings per share
CEO Enrique Lores said revenue increased 5% during the quarter, while transaction margin dollars rose 1%. Excluding interest on customer balances, transaction margin dollars grew 3%. Non-GAAP earnings per share declined 1% year over year to $1.38, but exceeded the company’s guidance. – MarketBeat Week in Review – 07/13- 07/17 Total payment volume reached $486 billion, increasing 9% on a currency-neutral basis.
Online branded checkout volume grew 2% on a currency-neutral basis for the second consecutive quarter, while Venmo and Braintree payment volume grew in the mid-teens. Raised Full-Year Outlook Chief Financial and Operating Officer Jamie Miller said PayPal now expects full-year transaction margin dollars of approximately $15.6 billion, or $14.5 billion excluding interest on customer balances. The company raised its full-year non-GAAP EPS outlook to $5.38 and expects at least $6 billion of adjusted free cash flow. – PayPal Stock Surges on $53 Billion Stripe-Advent Buyout Bid The company also expects approximately $6 billion in share repurchases for the year.