Online payments processor Paypal Holdings Inc (NASDAQ:PYPL) late today posted solid Q3 earnings results, and despite seemingly lackluster guidance, its shares surged higher in after-hours trading.
The San Jose-based company reported adjusted Q3 net income of $0.35 per share, matching Wall Street estimates. Revenue surged 18.1% from last year to $2.67 billion, edging out analysts’ view of $2.65 billion.
Looking ahead, PYPL forecast Q4 EPS of $0.40 to $0.42, which could miss Wall Street expectations of $0.42. The company guided Q4 revenues to range from $2.920 to $2.990 billion, which would miss analysts’ $2.97 billion estimate.
Paypal said that its active customer accounts grew to 192 million in the latest period, up 11% from the year-ago quarter. The company saw the same level of growth in Q2 as well. In Q3, Paypal also processed 1.5 billion transactions, up 24% from the year-ago period.
PYPL commented via press release:
“We are pleased to have delivered another quarter of strong results. The opportunities for PayPal to grow and gain share have never been greater. We are executing against our strategic plan with intensity and speed, and we are committed to seizing the opportunities in front of us by truly embracing the mantle of “Customer Champion.” We are further expanding the ubiquity and value of the PayPal brand and moving deliberately towards achieving our vision of becoming an everyday, essential financial service for people around the world,” said Dan Schulman, President and CEO of PayPal.
Paypal shares rose $1.51 (+3.77%) to $41.60 in after-hours trading Thursday. Prior to today’s report, PYPL had gained 10.57% year-to-date.