Paypal Holdings Inc shares fell after the company reported first quarter earnings, despite surpassing analyst expectations and increasing its full-year guidance.
The payments giant's revenue was $7.04 billion, up about 10% year-over-year and above Street expectations of $6.96 billion. Earnings were $1.17 per share, up 33% from a year earlier and topping expectations of $1.10.
Payments volume rose 12% on a forex-neutral basis to $354.5 billion in the quarter ended March 31.
Looking ahead, Paypal issued upsized full-year adjusted earnings guidance of $4.95 per share, a 20% gain and higher than analysts' average estimate of $4.88 per share, according to Refinitiv IBES.
However, investors aren’t sufficiently impressed. The stock is down nearly 4% to $72.71 in after-hours trading.
It’s possible there are concerns about Paypal’s succession plan. In February, the company confirmed that CEO Dan Schulman will step down later this year.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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