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Analysts project PayPal to post $2.81 EPS for FY2020

Analysts project PayPal to post $2.81 EPS for FY2020

Stock analysts at Jefferies Financial Group project online payment service provider PayPal (NASDAQ: PYPL) to post $2.81 earnings per share (EPS) for the 2020 financial year. The estimates also indicate that PayPal’s Q4 2020 earnings will be at $0.74 per share.

Led by T. Williams, the analysts expect PayPal to register $0.72 EPS for Q1 2021, which will slightly grow to $0.83 EPS during Q2 2021. As of Q3 2021, the earnings are projected to hit $0.89 EPS. Williams further estimates Q4 2021 earnings to be at $1.04 EPS and FY2021 earnings at $3.48 EPS.

PayPal earning history and estimates. Source:

During the last earnings for Q3 2020 in November, the results differed from analyst estimates. The company reported $1.07 EPS for the quarter, beating analysts’ consensus estimates of $0.94 by $0.13. The revenue stood at $5.46 billion for the quarter, while analysts had estimated $5.41 billion. During the quarter, PayPal registered a 15.48% net margin and a return on equity of 18.31%.

PayPal stock performance. chart.

Large investors acquire stake in PayPal

At the same time, several large investors have bought or sold PayPal shares in recent months. Flputnam Investment Management increased its position in PayPal by 2.6% during the quarter. The firm now has a total of 2,722 shares in PayPal.

Grimes & Company now owns 1,795 PayPal shares after increasing its stake by 5.9% during Q4 2020. Adams Wealth Management bought shares in PayPal valued at around $25,000.  Advisory Alpha also acquired a stake in the company for a similar amount. Both acquisitions were finalized during the third quarter. 

PayPal’s revenue has likely surged after allowing cryptocurrency transactions. PayPal in November enabled customers to buy, sell and hold cryptocurrencies. However, analysts are still grappling with how much net revenue PayPal will earn from crypto transactions.

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