Dan Schulman, president and chief executive officer of PayPal Holdings Inc., arrives for the morning session of the Allen & Co. Media and Technology Conference in Sun Valley, Idaho, U.S., on Wednesday, July 10, 2019. The 36th annual event gathers many of America’s wealthiest and most powerful people in media, technology, and sports.
Patrick T. Fallon | Bloomberg | Getty Images
PayPal shares rose as much as 13% in extended trading on Tuesday after the financial services firm issued stronger-than-expected second-quarter results. In its earnings materials PayPal said it had entered into an information-sharing agreement on value creation with Elliott Management.
“As one of PayPal’s largest investors, with an approximately $2 billion investment, Elliott strongly believes in the value proposition at PayPal. PayPal has an unmatched and industry-leading footprint across its payments businesses and a right to win over the near- and long term,” Elliott Managing Partner Jesse Cohn was quoted as saying in an PayPal earnings presentation. The news comes a day after Elliott said it had become the top investor in social-network operator Pinterest.
Here’s how PayPal did in the second quarter:
- Earnings: 93 cents per share, adjusted, vs. 86 cents per share as expected by analysts, according to Refinitiv.
- Revenue: $6.81 billion, vs. $6.79 billion as expected by analysts, according to Refinitiv.
PayPal announced a “comprehensive evaluation of capital return alternatives” as it said it revealed a $15 billion share buyback program. The company said it’s seeking a replacement for Mark Britto, its chief product officer for the past two years. Britto will retire later this year.
For the full year, PayPal said it expects $3.87 to $3.97 in adjusted earnings per share. Analysts polled by Refinitiv had expected $3.82 per share.
Notwithstanding the after-hours move, PayPal shares had fallen 52% so far this year.
Executives will discuss the results with analysts on a conference calls starting at 5 p.m. ET.
This story is developing. Please check back for updates.
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