Key takeaways
- PayPal beat profit and sales estimates, improved its outlook and its new CEO promised to cut costs.
- The company named former EY, Cargill and GE CFO Jamie Miller as its new CFO.
- PayPal said it was subpoenaed by the SEC in connection with its recently launched stablecoin.
Shares of PayPal Holdings (PYPL) advanced as the payment systems provider reported better-than-expected results, raised its outlook and its new CEO promised to cut costs. However, the enthusiasm was somewhat tempered after federal regulators cited the company for its move into cryptocurrencies.
PayPal said fiscal third-quarter 2023 earnings rose 20% year over year to $1.30 per share. Sales rose 8% to $7.42 billion. Both exceeded estimates. Total payment volume increased 15% to $388.7 billion.
CEO Alex Chriss, who took over in September, explained: “Simply put, our cost base is still too high.” He added that PayPal will be “more efficient so we can innovate and execute faster.”
PayPal raised its full-year earnings per share (EPS) outlook to about $4.98 from $4.95 previously.
The company also announced that Jamie Miller would become the new chief financial officer. She had previously been CFO of EY, Cargill and General Electric.
Additionally, PayPal explained that the Securities and Exchange Commission (SEC) subpoenaed the company to file documents related to its stablecoin, PayPal USD (PYUSD), which it launched in August. The company said it was cooperating with the investigation.
Despite Thursday’s gains, PayPal stock has remained more than 20% lower so far this year.
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