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PayPal Stock: Payments Company Offers Disappointing Guidance

Payments company tops EPS estimates, but misses on revenue for just-completed quarter.
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PayPal Holdings  (PYPL) - Get PayPal Holdings Inc Report offered disappointing guidance for its fiscal third-quarter after the bell Wednesday even as it topped earnings estimates for the second quarter but missed revenue forecasts. 

The payments processor reported non-GAAP earnings of $1.15 a share on revenue of $6.24 billion for the latest quarter. PayPal  had been expected to report earnings of $1.12 a share, on sales of $6.3 billion, based on a FactSet survey of 38 analysts.

In the same period a year ago, the company posted earnings of $1.07 a share on sales of $5.3 billion.

PayPal said it expects third-quarter revenue of $6.15 billion to $6.25 billion and non-GAAP earnings of $1.07 a share. 

Analysts had been forecasting sales of $6.4 billion and earnings of $1.14 a share.

For the full year, PayPal forecast revenue of $25.75 billion vs. analyst estimates of $25.9 billion.

Shares of PayPal fell sharply in after-hours trading Wednesday following the report. The stock fell $24.66, or 8.2%, to $277.32 in recent action. 

PayPal is a holding in Jim Cramer's Action Alerts PLUS member club. On a recent call with members of the club, Cramer discussed the company's position and the possibility that it  may be the JPMorgan of 100 years ago.

The stock has risen 24% since the company last reported earnings on May 5.

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Elsewhere, FinTech stocks were mixed Wednesday.

Among notable names, 10 rose while six fell.

Qudian  ADRs  (QD) - Get Qudian, Inc. Sponsored ADR Class A Report rose 15.5 cents, or 9.01%, to $1.88.

Jack Henry & Associates  shares  (JKHY) - Get Jack Henry & Associates, Inc. (JKHY) Report fell $4.18, or 2.37%, to $171.94.

Among large-cap financial stocks of companies with significant financial tech initiatives, Alibaba  (BABA) - Get Alibaba Group Holding Ltd. Sponsored ADR Report shares rose $10.47, or 5.63%, to $196.54.

Alibaba Group Holding Ltd. Sponsored ADR is a focus of the Trifecta Stocks team. To find out more about how you can profit from Chris Versace and Bob Long's insights at Trifecta Stocks, please visit realmoney.com.

Mastercard  (MA) - Get Mastercard Inc. (MA) Report shares fell $7.57, or 1.94%, to $382.70.

Mastercard Incorporated Class A is a component of the Real Money Post Industrial Average. To find out more about how you can profit from this and other Real Money premium products, please visit realmoneypro.com.

Among fintech ETFs, The ARK Fintech Innovation ETF  (ARKF) - Get ARK Fintech Innovation ETF Report rose $1.45, or 2.85%, to $52.20.

The Tortoise Digital Payments ETF  (TPAY) - Get Tortoise Digital Payments Infrastructure Fund Report traded flat at $47.07.