PayPal Q1 results will not be just another game of numbers
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PayPal (NASDAQ:PYPL) is scheduled to announce Q1 earnings results on Monday, May 8th, after market close, and it's not just the numbers that can affect share prices.
The digital payments giant is expected to post strong growth this quarter, with other digital payments companies also reporting solid results.
Block posted better-than-expected Q1 earnings, and raised its 2023 guidance. Fiserv also raised the lower end of its FY23 outlook for profit and sales growth, having delivered Q1 earnings and revenue above Wall Street estimates, mostly driven by continued outperformance in its Merchant business.
And, Fidelity National Information Services was no exception.
Analysts are positive on PayPal.
The company's Q1 earnings might surprise to the upside on stronger revenue and adjusted operating margin improvement, with e-commerce volume trending better than expected. There is room for a 2023 guidance upgrade, Bloomberg Intelligence analyst Diksha Gera said.
Deutsche Bank analyst Bryan Kean expects PayPal to raise the lower end of its FY23 revenue growth expectations to 7% from 5% and earnings growth guidance to 20% from 18%. The analyst opines that even as macroeconomic concerns continue to weigh on broader market sentiment, e-commerce growth appears to be trending better than expected to start the year.
PYPL's consensus EPS estimate is $1.10 (+24.95% Y/Y) and consensus revenue estimate is $6.99B (+7.78% Y/Y).
Over the last 2 years, the company has beaten EPS estimates 88% of the time and revenue estimates 63% of the time.
Over the last 3 months, EPS estimates have seen 16 upward revisions and 8 downward revisions. Revenue estimates have seen 18 upward revisions and 8 downward revisions.
But for Monday, investors also have their eyes on any possible announcement relating to new appointments.
Notably, the company's president and CEO Dan Schulman announced his retirement on Dec. 31, but said he will continue to serve on the board. About one month later, there were news on CFO Blake Jorgensen stepping down from his role after a leave of absence for health reasons.
Also, PayPal's chief transformation officer and senior vice president of finance and analytics, Erica Gessert, joined the work marketplace Upwork as CFO in April.
Any announcements on new appointments, especially the CEO appointment, could be a potential catalyst to the stock price movements.
"To make it a positive one, however, we believe PYPL should favor a visionary CEO as opposed to an operator," Mizuho analyst Dan Dolev said in a recent research note.
Read more on PayPal:

PayPal: Where Wall Street And Main Street Meet
PayPal: High-Quality Business At A Discount Price
PayPal: Braintree May Boost Its Sluggish Valuations