A spotlight to change in income: PayPal Holdings, Inc. (NASDAQ: PYPL)

On 07 Feb 2020, PayPal Holdings, Inc. (NASDAQ: PYPL) changed -0.84% to recent value of $118.88. The stock transacted 4138877 shares during most recent day however it has an average volume of 6877.18K shares. It spotted trading -2.71% off 52-week high price. On the other end, the stock has been noted 32.09% away from the low price over the last 52-weeks.

Global technology platform and digital payments leader PayPal Holdings, Inc. (PYPL) recently reported fourth quarter and full year results for the period ended December 31, 2019.

Financial highlights for fourth quarter 2019

  • Revenue of $4.96B; growing 17% on a spot basis and 18% on a foreign currency-neutral (FX-neutral or FXN) basis.
  • GAAP operating income of $0.8B, increasing 34%; non-GAAP operating income of $1.2B, increasing 28%.
  • GAAP operating margin of 16.1% with non-GAAP operating margin of 23.6%.
  • GAAP EPS of $0.43, decreasing 13%; non-GAAP EPS of $0.86, increasing 24%.
  • Cash flow from operations of $1.3B with free cash flow of $1.1B.
  • Repurchased about 2.9M shares of ordinary stock, returning $305M to stockholders.

Operating highlights for fourth quarter 2019

  • 3M net new active accounts, bringing total active accounts to 305M accounts, up 14%.
  • 5B payment transactions, up 21%.
  • $199B in total payment volume (TPV), up 22% on a spot and FX-neutral basis.

Financial highlights for full year 2019

  • Revenue of $17.77B; growing 15% on a spot and FX-neutral basis.
  • GAAP operating income of $2.7B, increasing 24%; non-GAAP operating income of $4.1B , increasing 23%.
  • GAAP operating margin of 15.3% with non-GAAP operating margin of 23.2%.
  • GAAP EPS of $2.07, increasing 21%; non-GAAP EPS of $3.10 , increasing 28%.
  • Cash flow from operations of $4.6B with free cash flow of $3.9B.
  • Repurchased about 14M shares of ordinary stock, returning $1.4B to stockholders.

Operating highlights for full year 2019

  • 3M net new active accounts, bringing total active accounts to 305M accounts, up 14%.
  • 4B payment transactions, up 25%.
  • $712B in total payment volume (TPV), up 23%, or 25% on an FX-neutral basis.
  • 6 payment transactions per active account on a trailing twelve months basis, up 10%.

PayPal’s key business initiatives

In November, PayPal reported its contract to acquire Honey Science Corporation, a rapidly-growing technology platform for shopping and rewards, for about $4B.  This transaction, which closed in January 2020 , is predictable to transform the shopping experience for PayPal’s consumers while increasing sales and consumer engagement for merchants.

Following a planned investment in March 2019, PayPal executed a commercial contract with MercadoLibre in December.  This contract will allow PayPal and MercadoLibre to together leverage their scale and capabilities to strengthen both companies’ networks.

In December, PayPal completed its acquisition of a 70% equity interest in Guofubao Information Technology Co., Ltd. (GoPay), following authorization of the transaction by the People’s Bank of China in September 2019. With the completion of this deal, PayPal became the first foreign payments platform licensed to provide online payment services in China.

In January 2020, PayPal reported a planned joint venture with UnionPay International (UPI) whereby both companies will work together to better serve joint consumers and merchants. As part of this joint venture, UPI will support PayPal’s merchant and consumer initiatives in China and PayPal will support UPI acceptance globally where PayPal is accepted, providing UPI consumers more choice when shopping.

PYPL has a gross margin of 44.90% and an operating margin of 13.00% while its profit margin remained 14.10% for the last 12 months. Its earnings per share (EPS) expected to touch remained 6.70% for this year while earning per share for the next 5-years is expected to reach at 19.17%.  The company has 1207.49M of outstanding shares and 1162.46M shares were floated in the market. According to the most recent quarter its current ratio was 1.4 that represents company’s ability to meet its current financial obligations. The price moved ahead of 2.31% from the mean of 20 days, 7.11% from mean of 50 days SMA and performed 8.72% from mean of 200 days price. Company’s performance for the week was 4.38%, 6.31% for month and YTD performance remained 9.90%.

 

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