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PayPal Received Record Net Profit And Revenue In Q2 2020

PayPal Received Record Net Profit And Revenue In Q2 2020

American payment system PayPal Holdings Inc reported the best quarterly results in its history due to the acceleration of the transition to online and contactless payments during the coronavirus pandemic.

All key financial indicators of the company exceeded the forecasts of experts.

According to a press release from PayPal, net income in the second quarter was $1.53 billion, or $1.29 per share, compared with $823 million, or $0.69 per share, in the same period a year earlier.

Adjusted earnings were $1.07 per share, while analysts, on average, predicted a figure of $0.87 per share, according to Barron's publication.

The company's revenue in April-June increased by 25% to $5.26 billion. Analysts ' consensus forecast called for revenue of $4.99 billion.

Total payments totaled $221.73 billion compared to $172.36 billion for the same period a year earlier. Analysts, on average, predicted a figure of $210 billion. In annual terms, the volume of payments increased by 29%, or 30%, excluding currency fluctuations.

In the third quarter, PayPal expects revenue of $5.48 billion and adjusted earnings of $0.95 per share, compared with wall street experts ' forecasts of $5.06 billion and $0.86 per share, respectively.

For the full year 2020, PayPal expects to generate revenue of $21.7 billion and increase adjusted earnings by 25%, to about $3.70 per share. Experts polled by FactSet, on average, predicted indicators of $20.4 billion and $3.38 per share, respectively.

The shares of PayPal in the course of trading on Wednesday rose by 3.5%. The company's capitalization has increased by 70.7% since the beginning of the year, to $206.97 billion.