(Reuters) – PayPal Holdings Inc (PYPL.O) on Wednesday reported a second-quarter profit that beat analysts’ estimates, but its forecast for third-quarter revenue came up short.
The PayPal app logo seen on a mobile phone in this illustration photo October 16, 2017. REUTERS/Thomas White/Illustration
Net income rose to $526 million, or 44 cents per share, in the second quarter, from $411 million, or 34 cents per share, a year earlier. Revenue rose to $3.86 billion from $3.13 billion.
Excluding one-time items, the company earned 58 cents per share, beating the average analyst estimate of 57 cents, according to Thomson Reuters I/B/E/S.
For the third quarter, PayPal said it expects revenue between $3.62 billion and $3.67 billion, below analysts’ $3.71 billion estimate.
Shares of PayPal fell 5.7 percent to $86.10 after the bell.
Since separating from online marketplace eBay Inc in 2015, San Jose, California-based PayPal has been striving to become more than just a checkout button on e-commerce platforms.
It has been expanding the breadth of its services through an aggressive strategy of partnerships and acquisitions, as it looks to stay ahead of rivals in the increasingly competitive digital payments landscape.
“PayPal is committed to being a comprehensive digital payments platform, offering complete solutions to our customers as the world rapidly digitizes across both retail and financial services,” PayPal Chief Executive Dan Schulman said on a call with analysts.
In May it said it had agreed to acquire Swedish payments company iZettle for $2.2 billion, in its largest ever acquisition….