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.
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.
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.