For the fourth quarter, PayPal expects adjusted profit to grow in
a range of 17% to 18%, below analysts' estimated growth of about 24%
By Anna Irrera,
Niket Nishant and Eva Mathews
(Reuters) - PayPal
Holdings Inc beat Wall Street estimates for quarterly revenue and profit on
Monday, boosted by a surge in digital payments as COVID-19 lockdowns worldwide
drove more businesses online, but it forecast current-quarter profit below
expectations.
Shares of the
digital payment’s processor fell more than 6% in extended trade.
For the fourth
quarter, PayPal expects adjusted profit to grow in a range of 17% to 18%, below
analysts' estimated growth of about 24%, according to IBES data from Refinitiv.
PayPal Chief
Executive Dan Schulman said in a call with analysts that the company was giving
a more prudent estimate for the fourth quarter in part because of uncertainty
due to the pandemic and its impact on the global economy, as well as Tuesday's
U.S. presidential election and concerns about social unrest.
Like other
companies in the digital
payments sector, PayPal has been profiting from a boom in online
transactions this year, heavily driven by pandemic restrictions that have pushed
more business into the virtual realm.
The San Jose,
California-based company processed a total of $247 billion (£191 billion) in
payments in the third quarter, up 36% from the year-earlier period, and added
15.2 million net new active customers.
The company said
it was on track to process just shy of $1 trillion in payments this year.
While pandemic
lockdowns eased in many regions during the third quarter, PayPal said momentum
for digital payments continued, and it recorded its all-time highest daily
payments volume level in October.
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