PayPal to report Q2 earnings tomorrow
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PayPal (NASDAQ:PYPL) is scheduled to announce Q2 earnings results on Wednesday, August 2nd, after market close.
The consensus EPS estimate is $1.16 (+24.7% Y/Y) and the consensus revenue estimate is $7.27B (+6.9% Y/Y).
Over the last 2 years, PYPL has beaten EPS estimates 88% of the time and revenue estimates 75% of the time.
Over the last 3 months, EPS estimates have seen 10 upward revisions and 19 downward revisions. Revenue estimates have seen 16 upward revisions and 12 downward revisions.
Past results:
Q1 non-GAAP EPS of $1.17 beats by $0.07 and revenue of $7.04B (+8.3% Y/Y) beats by $50M.
The company raised its FY23 EPS guidance to ~$4.95 from ~$4.87.
The payment tech company reduced its 2023 operating margin guidance to at least 100 basis points from its previous expectation of ~125 bps.
Peer performance:
Fiserv raised its 2023 revenue and earnings guidance, reflecting stronger-than-expected Q2 earnings and an improved economic outlook for the rest of the year.
Q2 non-GAAP EPS of $1.81 beats by $0.02 and revenue of $4.76B (+7.0% Y/Y) beats by $220M.
Wallstreet analysts on PYPL:
Oppenheimer analyst Dominick Gabriele, who gives the stock Outperform rating with $89 price target, said the consensus continues to move towards their expectations.
Seeking Alpha analysts on PYPL:
PayPal's actual revenue has beaten analyst consensus estimates in eight of the last nine quarters, suggesting that Wallstreet is underestimating its business growth potential. We initiate our coverage of PayPal Holdings with an "outperform" rating for the next 12 months, according to SA author Nathan Aisenstadt.
Ratings:
The sell-side analysts give the stock a Buy rating, with an average price target of $93.95.
SA analysts give the stock a Buy rating, and the Quant Rating system gives the stock a Hold rating.
The stock is currently trading at $75.10, and the last reported book value per share is $17.70.
More on PayPal:

PayPal: A Good Time To Buy (Technical Analysis)
PayPal: Enhanced Fundamentals Alongside Fintech Outlook; Significant Upside Potential