PayPal Q4 Earnings Preview: 3 Key Metrics To Watch

Summary:

  • PayPal is going to submit its earnings sheet for the fourth-quarter on February 9, 2023.
  • I believe 3 key metrics will be especially important to watch in order to evaluate PayPal’s business trajectory in 2023.
  • PayPal’s shares could see a revaluation this year if the payment services provider submits a strong outlook.

:Silhouette of upset Australian woman over PayPal logo

chameleonseye

PayPal (NASDAQ:PYPL) is going to report earnings for its fourth-quarter on February 9, 2023 and I believe three key metrics are especially important for investors to pay attention to. Although PayPal increased its EPS guidance for FY 2023 in

Source: Seeking Alpha

Source: Seeking Alpha

Source: PayPal

Source: PayPal

Q3’21

Q4’21

Q1’22

Q2’22

Q3’22

Growth Y/Y

Revenues ($M)

$6,182

$6,918

$6,483

$6,806

$6,846

11%

Free Cash Flow ($M)

$1,286

$1,550

$1,051

$1,291

$1,766

37%

FCF Margin

21%

22%

16%

19%

26%

(2 PP)

Chart
Data by YCharts

PayPal

FY 2023

FY 2024

FY 2025

EPS

$4.76

$5.55

$6.34

YoY Growth

16.95%

16.65%

14.22%

P-E Ratio

17.3 X

14.8 X

13.0 X


Disclosure: I/we have a beneficial long position in the shares of PYPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.


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