What to Look for When PayPal (PYPL) Reports Q2 Earnings

PayPal (PYPL) stock is rising on Wednesday afternoon ahead of the company’s 2016 second quarter results, due out after Thursday’s closing bell.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of PayPal (PYPL) - Get Report are gaining 1.44% to $39.94 midday Wednesday ahead of the company's 2016 second quarter results, due out after Thursday's market close.

Wall Street is expecting the San Jose, CA-based technology payment platform to report earnings of 36 cents per share on revenue of $2.6 billion.

PayPal did not report 2015 second quarter results because it was spun off from eBay (EBAY) in July 2015.

During the 2016 first quarter, PayPal earned 37 cents per share on revenue of $2.54 billion.

Pacific Crest Securities maintained its "overweight" rating on the stock ahead of the results.

"Underlying Q2 fundamentals should remain strong at PayPal, and we expect 2016 guidance to be maintained; model complexity and a lack of visibility into 2017 margin dynamics may limit upside in the near term," the firm wrote in a recent analyst note.

(PayPal is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trial here.)

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