PayPal Beats Earnings Expectations As Sale Speculation Swirls
By CU Today Staff —
SAN JOSE, Calif.—PayPal delivered stronger-than-expected second-quarter results and raised its full-year profit outlook Tuesday as it sought to reassure investors that its turnaround strategy can create more value than a reported $53-billion takeover bid from Stripe and Advent International first reported earlier this month, Reuters reported.
The results follow earlier reports, including by CUToday.info, that Stripe and Advent had offered $60.50 per share for the payments giant, an offer PayPal's board reportedly views as too low.
PayPal reported adjusted earnings of $1.38 per share on revenue of approximately $8.68 billion, topping Wall Street expectations, while increasing its full-year adjusted earnings forecast to $5.38 per share. The company also outlined additional cost-cutting and AI-driven productivity initiatives expected to generate approximately $400 million in savings this year as it continues a multiyear restructuring, Reuters said.
The earnings report comes as PayPal attempts to regain momentum after losing ground to rivals including Apple Pay and Google Pay. Analysts said the better-than-expected results strengthen management's case for remaining independent, although questions surrounding the Stripe-Advent proposal are likely to persist. Shares rose following the report as investors weighed the improved outlook against the possibility of renewed acquisition negotiations.
Originally reported by CU Today.