PayPal’s Q1 Earnings Chart Positive Course for 2017, EPS Rises

PayPal saw its revenues climb on a year-over-year basis, with EPS also beating estimates.

Global technology platform and digital payments provider PayPal (NASDAQ:PYPL) has released its Q1 2017 earnings, which outlined a positive performance, laying the framework for an optimistic fiscal year, according to a group filing.

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In terms of revenues, PayPal saw a stagnation in this figure on a quarterly basis, reporting $2.98 billion in Q1 2017, which was unchanged quarter-over-quarter on from Q4 2016 on a foreign currency neutral (FX-neutral) basis. By extension, relative to 2016, the group did see an increase of 19.0 percent year-over-year from $2.5 billion in Q1 2016.

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Moreover, PayPal disclosed a GAAP operating margin of 14.5 percent in Q1 2017 as well as a down from 15.0 percent in Q4 2016 – the group also saw a non-GAAP operating margin of 21.6 percent in Q1 2017, relative to 21.0 percent in Q4 2016.

Looking at its GAAP earnings per diluted share (EPS) growth climbed 6.0 percent year-over-year in Q1 2017, to $0.32. Its non-GAAP EPS growth relative to Q1 2016 was also higher by a factor of 19.0 percent to $0.44. PayPal’s GAAP net income scored a healthy increase in Q1 2017, reflective of a figure of $384.0 million, climbing by 5.2 percent year-over-year from $365.0 million in Q1 2016.

2017 Outlook

Moving forward, PayPal expects revenue to grow between 15 and 17 percent at current spot rates as well as 17 to 19 percent on an FX-neutral basis, to a range of $12.5 to $12.7 billion – this would represent a new high for the group.

Furthermore, PayPal is portending GAAP earnings per diluted share in the range of $1.28 to $1.33 and non-GAAP earnings per diluted share in the range of $1.74 to $1.79 for the 2017 year. Investors seem to share in the optimism surrounding the company’s shareprices, with PayPal (NASDAQ:PYPL) stock climbing to $47.35 during US trading, up 6.39 percent at the time of writing.

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