William Blair Projects Lower Earnings for PayPal in Q1 2025

On February 5th, 2025, William Blair released a report indicating a revised forecast for PayPal Holdings, Inc. (NASDAQ:PYPL) regarding its earnings in the first quarter of 2025. The analyst, A. Jeffrey, adjusted their earnings per share (EPS) estimate down to $1.19 from a previous estimate of $1.23. In addition, the consensus expectation for PayPal's total earnings for the fiscal year 2025 is now projected at $4.58 per share. William Blair also provided estimates for subsequent quarters, forecasting earnings of $1.31 EPS for Q3 2025 and $1.37 EPS for Q4 2025. The firm’s forecast for FY2025 earnings sits at $5.13 EPS while FY2026 is expected to reach $5.68 EPS.

Recently, PayPal released its quarterly earnings report on February 4th, where it reported an EPS of $1.19, finally exceeding the consensus estimate of $1.11 by $0.08. The credit service company boasted a return on equity of 23.44% and a net margin of 14.08%. The revenue for the reported quarter totaled $8.37 billion, surpassing analyst expectations of $8.27 billion and indicating a 4.2% increase from the same period in the prior year when the earnings per share were $1.48.

Other research institutions have also commented on PayPal's stock. The Royal Bank of Canada maintained an 'outperform' rating with a price target of $100.00. Conversely, Robert W. Baird lowered their price target from $100.00 to $95.00, also rating PayPal as 'outperform.' Wolfe Research upgraded their rating from 'peer perform' to 'outperform' with a new price target of $107.00. Monness Crespi & Hardt heightened their price target from $95.00 to $110.00, assigning a 'buy' rating. Furthermore, Bank of America elevated its rating from 'neutral' to 'buy', increasing its target price from $86.00 to $103.00. Market insights reveal that 14 analysts rate the stock as a 'hold,' 21 have a 'buy' rating, and one has a 'strong buy.' As reported by MarketBeat.com, PayPal has an overall rating of "Moderate Buy" with an average target price of $89.29.

Current Market Performance of PayPal

As of Thursday, PayPal’s stock opened at $77.31, reflecting a decrease of 1.6%. Over the past year, the stock has seen a low of $55.77 and a high of $93.66. The moving averages reveal a 50-day price of $87.71 and a 200-day price of $79.38. Financial metrics show a debt-to-equity ratio of 0.49, a current ratio of 1.25, and a quick ratio also at 1.25. The total market capitalization for PayPal stands at $76.48 billion with a price-to-earnings ratio of 18.45 and a price-to-earnings growth ratio of 1.49, making the stock somewhat volatile with a beta of 1.44.

Institutional Investments in PayPal

Recently, several institutional investors have adjusted their holdings in PayPal. For instance, Rosenberg Matthew Hamilton increased its stake by 67.6% in the fourth quarter, acquiring 310 shares valued at about $26,000. Gordian Capital Singapore Pte Ltd also bought shares worth approximately $26,000. Sugarloaf Wealth Management raised its position by an impressive 344.3%, bringing its total to 351 shares valued at $30,000. Planning Capital Management Corp grew its stake significantly by 186.1%, while Financial Management Professionals Inc increased theirs by 125.3%. Overall, approximately 68.32% of PayPal’s stock ownership is held by hedge funds and institutional investors.

About PayPal Holdings, Inc.

PayPal Holdings, Inc. provides a technology platform that facilitates digital payments for both merchants and consumers globally. This platform enables seamless connections and transactions, allowing users to send, receive, and transfer money using various funding sources, including bank accounts, credit cards, and PayPal-branded credit products, as well as cryptocurrencies and other forms of stored value.

PayPal, Earnings, Forecast