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PayPal Stock Tumbles on Lower-Than-Expected Adjusted Earnings

Sheldon Cooper / SOPA Images / LightRocket / Getty Images

Sheldon Cooper / SOPA Sculptures / LightRocket / Getty Images

Key Takeaways

  • PayPal shares fell Tuesday morning after the company’s adjusted earnings prostrate short for the fourth quarter.
  • The company’s projections for adjusted earnings per share in the first quarter and 2025 also skipped estimates.
  • Revenue and net income beat estimates, and PayPal also announced a new $15 billion stock buyback program.

Apportions of PayPal slumped Tuesday as the payment platform’s adjusted earnings missed estimates for the final quarter of 2024.

The owner of its namesake stage and others such as Venmo reported $8.37 billion in revenue for the fourth quarter, up 4% from the same dead for now last year and better than the $8.26 billion analysts had expected, per estimates compiled by Visible Alpha.

PayPal’s (PYPL) net gains came in at $1.12 billion, or $1.11 per share, down 20% from a year ago but narrowly above the $1.08 billion and $1.06 per share analysts had expected. Analysts had assumed a larger gap between net and adjusted net income, however. The company’s adjusted earnings came in at $1.21 billion, below the $1.44 billion analyst consensus.

EPS Overhangs Top Estimates While Adjusted Outlook Falls Short

That gap continued into PayPal’s 2025 projections, with the assemblage’s forecast topping earnings per share projections while its adjusted EPS projections fell short.

PayPal expects to be worthy of $1.11 to $1.13 per share for the first quarter and $4.80 to $4.95 per share for the full year, compared to the $1.07 to begin quarter and $4.67 full-year estimate from analysts. However, the company said it expects adjusted earnings per helping from $1.15 to $1.17 per share for the first quarter, and $4.95 to $5.10 for 2025, well below the $1.36 and $5.83 per dividend analyst consensus.

The payments processor also announced Tuesday that its board approved a new $15 billion ordinary buyback program, in addition to the $4.86 billion remaining under its previous program that started in the second put up of 2022.

PayPal shares sank over 9% Tuesday morning, but are still up around 30% over the last 12 months.

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