What happened
Shares of the fintech PayPal Holdings (PYPL) were rising today after the company reported its latest financial results. The company's first-quarter results were somewhat mixed, but investors' bullish take on the stock today could be coming from the fact that PayPal beat analysts' consensus revenue estimate.
The fintech stock was up by 3.4% as of 11:29 a.m. ET on Thursday.
So what
PayPal reported revenue of $6.5 billion in the quarter, up 7% year over year, which slightly beat Wall Street's consensus estimate of $6.4 billion.
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The company's non-GAAP earnings per share of $0.88 was in line with analysts' consensus estimate but was down from $1.22 per share in the year-ago quarter.
CEO Dan Schulman said in a press release that he was pleased with the company's first-quarter results because they exceeded the company's revenue and earnings guidance. But he added, "We have much to be proud of but we know we can continue to do even better."
Now what
Despite the share price increase this morning, PayPal's management made it clear that there could be more difficult times ahead.
The company revised its full-year revenue and earnings guidance down from its previous estimates. Management said that revenue will increase by 13% for the full year, down from its previous estimate of 17% growth.
Additionally, the company expects non-GAAP earnings per share to be in the range of $3.81 to $3.93, which is lower than management's previous earnings guidance between $4.60 and $4.75.
Investors might have been expecting an even more aggressive revised guidance from the company, which could be one of the reasons PayPal's share price climbed today despite the company's less-than-optimistic outlook.
