Will PayPal Q2 results bring positive surprise amid inflationary scenario?
JasonDoiy/iStock Unreleased via Getty Images

PayPal (NASDAQ:PYPL) is scheduled to announce Q2 earnings results on Tuesday, August 2nd, after market close.
The consensus EPS Estimate is $0.87 (-24.3% Y/Y) and the consensus Revenue Estimate is $6.78B (+8.7% Y/Y).
Over the last 2 years, PYPL has beaten EPS estimates 88% of the time and has beaten revenue estimates 75% of the time.
Over the last 3 months, EPS estimates have seen 2 upward revisions and 13 downward. Revenue estimates have seen 2 upward revisions and 13 downward.
PayPal's stock rose +11.48% on April 28, the day after it reported its Q1 results post market April 27. The payment company's earnings met the consensus estimate and revenue topped expectations. However, PayPal adjusted down its expectations for net new accounts for the year and also slashed its FY2022 adjusted EPS outlook. A few days later, PayPal President and CEO Dan Schulman pointed that in its guidance the company needed to incorporate the likelihood that things get worse going forward and don't necessarily stabilize or get better.
In June, Mizuho Securities USA estimated that PayPal's Venmo revenue could gain 15%-20% if Apple opened up its tap-to-pay feature to Venmo.

In July, Redburn downgraded the payment giant citing poor e-commerce trends posing a risk to its earnings. Another concern for the firm was that the the Buy Now, Pay Later space was expected to "fall sharply," as rising interest rates were triggering higher funding costs in a move that will squeeze the margins of PayPal (PYPL) and other BNPL providers.
Apple had said in June that it was pushing forward with its own BNPL offering. Klarna CEO Sebastian Siemiatkowski considered the news as an "amazing" development in the space. In the same month, PayPal (PYPL) launched its newest BNPL offering Pay Monthly issued by WebBank.
PayPal shares got a boost in the last week of July following reports that activist Elliott Management had taken a stake in the company and may even get a board seat. However, BofA analyst Jason Kupferberg was a bit more skeptical of what impact an activist could have on PayPal.
PayPal was among Morgan Stanley's Risky Picks list (in a recessionary scenario) in June, as the company, and certain others, were likely to be hit due to their higher exposure to discretionary and luxury spending. YTD, PYPL has shed ~54%, see chart here.
During Q2, PayPal launched a new business credit card offering cashback rewards. The company also announced that users could transfer cryptocurrencies between PayPal and other wallets and exchanges. In addition, PayPal adjusted its Goods & Services payments fee structure.
PayPal also made an investment in real estate-focused financial services provider, Jetty. The company also raised $3B via a debt offering.
Recent earnings Analysis from our contributors:PayPal: Mr. Market Is Over Whipping The Cash Cow