PayPal Holdings Inc (PYPL) shares are dropping after reporting a second-quarter sales miss.
Second-quarter adjusted earnings came in at 86 cents per share, which may not compare to the 73 cent estimate. Sales came in at $4.31 billion, missing estimates by $20 million.
The company also issued 2019 sales guidance below analyst estimates. It now sees sales of $17.6 billion-$17.8 billion versus the $17.99 billion estimate.
"PayPal delivered another solid quarter, and consequently we are raising EPS guidance for the year. Net new active accounts increased by a record 41 million over the last 12 months, and engagement per active account once again increased by 9% to 39 times a year. Venmo's momentum continues, with 70% growth in total payment volume to $24 billion. Earlier this month, Xoom expanded to 32 new send markets throughout Europe," said Dan Schulman, President and CEO of PayPal.
Highlights
- Revenue increased 12%
- 9 million net new active accounts
- 3 billion payment transactions, up 28%
- Venmo processed $24 billion of TPV, growing 70%
PayPal shares traded lower by 6.1% to $113.95 in Wednesday's after-hour session. The stock closed at $121.30.
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