Earnings Preview: PayPal Holdings, Inc. (NASDAQ:PYPL) moved up 3 times out of last 5 quarters

PayPal Holdings, Inc. (NASDAQ:PYPL) is projected to declare fiscal first quarter financial results right before the stock market’s official open on April 26, 2017. The stock added about 3.1 percent in price since last results when it was at $41.71 a share. Based on the most relevant past-periods data, there is an 60 percent probability for this firm’s share price to go up following next quarterly results. Earnings reaction history tells us that the equity price moved up 3 times out of last 5 reported quarters. It has beaten earnings-per-share estimates 66% of the time in its last 12 earnings reports. It fell short of earnings estimates on 0 occasions, and it has met expectations 2 times.

Here’s how traders responded to PYPL earnings announcements over the past few quarters.

PayPal Holdings, Inc. (PYPL) Earnings Surprises & Reaction

Given its history, the average earnings announcement surprise was 3.52 percent over the past four quarters. Back on January 26, 2017, it posted earnings per-share earnings at $0.34 which came in line with the consensus $0.34 projection (no surprise). For the quarter, revenue came in at 2.98B versus consensus estimate of 2.98B. The stock dropped -0.5 percent the session following the earnings reports were released, and on 7th day price change was 0 percent.

On October 20, 2016, it reported earnings at $0.29 a share compared with the consensus estimate of $0.27 per share (positive surprise of 7.41%). Revenue of 2.67B for that quarter was above the $2.65B analysts had expected. The stock climbed 10.13% the day following the earnings announcement, and on 7th day price change was 3.99%.

On April 27, 2016, it announced earnings per share at $0.32 versus the consensus estimate of $0.3 per share (positive surprise of 6.67%). That came on revenues of $2.54B for that period. Analysts had expected $2.5B in revenue.

PayPal Holdings, Inc. Earnings Estimates

As Q1 earnings announcement date approaches, Wall Street is expecting earnings per share of $0.41. The analysts’ present consensus range is $0.4-$0.43 for EPS. The market consensus range for revenue is between $2.91B and $2.97B, with an average of $2.94B.

PayPal Holdings, Inc. (NASDAQ:PYPL) last ended at $42.59, sending the company’s market cap near $51.43B. The consensus 12-month price target from analysts covering the stock is $47.1. The share price has declined -4.34% from its top level in 52 weeks and dropped 7.9% this year. It recently traded in a range of $42.45-$42.97 at a volume of 5527264 shares. The recent trading ended with the price nearly -0.65 lower for the last 5 trading days, rebounding 25.26% from its 52-week low.