Paypal (PYPL) Q4 Earnings Preview: What You Should Know Beyond the Headline Estimates

Analysts on Wall Street project that Paypal (PYPL) will announce quarterly earnings of $1.29 per share in its forthcoming report, representing an increase of 8.4% year over year. Revenues are projected to reach $8.77 billion, increasing 4.8% from the same quarter last year.The current level reflects a downward revision of 2% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.In light of this perspective, let's dive into the average estimates of certain Paypal metrics that are commonly tracked and forecasted by Wall Street analysts.Analysts' assessment points toward 'Net Revenues- Revenues from other value added services' reaching $835.17 million. The estimate points to a change of +7.4% from the year-ago quarter.Analysts forecast 'Net Revenues- Transaction revenues' to reach $7.93 billion. The estimate suggests a change of +4.5% year over year.According to the collective judgment of analysts, 'Total Payment Volume (TPV)' should come in at $468.32 billion. Compared to the current estimate, the company reported $437.84 billion in the same quarter of the previous year.The consensus estimate for 'Transaction margin' stands at 46.3%. The estimate is in contrast to the year-ago figure of 47.0%.The combined assessment of analysts suggests that 'Active accounts' will likely reach 440 . Compared to the present estimate, the company reported 434 in the same quarter last year.The consensus among analysts is that 'Number of payment transactions' will reach 6,607 . Compared to the current estimate, the company reported 6,619 in the same quarter of the previous year. View all Key Company Metrics for Paypal here>>> Shares of Paypal have experienced a change of -7.4% in the past month compared to the +0.8% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), PYPL is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.SeeWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PayPal Holdings, Inc. (PYPL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks