PayPal Stock Climbs On Cost-Cutting, Buyback, New CFO
PayPal Holdings (PYPL)$PayPal(PYPL)$
In addition, PayPal profit guidance for the September quarter met expectations, while its revenue forecast came in slightly below views. PayPal plans to save $900 million in cost-cutting moves in 2022, the company said.
San Jose, Calif.-based PayPal announced the appointment of Blake Jorgenson as its new chief financial officer. Jorgenson had been executive VP of special projects at video game company Electronic Arts (EA).
Also, PayPal confirmed that hedge fund Elliott Management has taken a $2 billion stake in the company.
PayPal reported earnings late Tuesday. PYPL stock climbed 11.6% to 100.09 in extended trading on the stock market today. In Tuesday's regular session, PayPal stock rose 1.2%.
PayPal earnings for the quarter ended June 30 came in at 93 cents per share, down 19% from a year earlier. The e-commerce company said revenue rose 10% to $6.8 billion.
Analysts expected PayPal earnings of 87 cents a share on revenue of $6.78 billion. A year earlier, PayPal earned $1.15 a share on sales of $6.24 billion.
In Q2, total payment volume processed from merchant customers climbed 13% to $339.8 billion. Analysts had projected total payment volume of $342.83 billion.
For the current quarter ending in September, PayPal forecast EPS of 95 cents, in line with estimates. PayPal forecast revenue of $6.8 billion, below estimates of $7.02 billion.
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