Shares of PayPal (NASDAQ:PYPL) lost nearly 4% in after-hours trading after the company reported earnings for its first quarter of Fiscal Year 2023. Earnings per share came in at $1.17, which beat analysts’ consensus estimate of $1.10 per share. Sales increased by 8.3% year-over-year, with revenue hitting $7.04 billion. This beat analysts’ expectations of $6.99 billion.
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Most of PayPal’s segments saw growth to some degree. PayPal’s total payment volume, for example, came in at $323 billion this time last year. Now, it’s at $355 billion. Individual transactions, meanwhile, climbed to 5.8 billion, 13% higher than this time last year. Finally, transactions per active account were also up, adding an extra 13% to reach 53.1 per account
PayPal management also offered some forward projections. Previous guidance expected full-year 2023 EPS growth of around 18% to reach $4.87 per share. That’s been modified to now reach 20%, hitting $4.95. As for the second quarter, EPS is expected to rise between 24% and 26% to hit between $1.15 and $1.17. That’s effectively in line with analyst projections calling for $1.17.
Overall, Wall Street has a consensus price target of $116.32 on PayPal stock, implying 53.54% upside potential, as indicated by the graphic above.