In the fourth quarter of 2020, PayPal (PYPL) tripled its profitability, completing what the company describes as its most profitable quarter ever. This was due to a boost in the adoption of digital payments during the pandemic. More precisely, the company has reported a net profit of 1.57 billion dollars ($1.32 per share), compared to $ 507 million ($43 per share) for the year before.
According to a FactSet poll, PayPal (PYPL) beat the analysts’ expectations of $ 1 earnings per share by $1.08 on a customized basis. Additionally, the company reported $6.12 billion, compared with $4.96 billion the year before, exceeding the $ 6.09 billion revenue forecasted. This quarter marks the first time the e-payment company posted revenue above the six billion-dollar mark.
It also announced that the company had increased the number of active accounts to 377 million. The value of transactions it completed through its platform reached 277 billion dollars from 199.4 billion dollars. According to the company’s preliminary forecasts, revenue growth on a neutral monetary basis averages 26%, with adjusted earnings per share increasing by 50%.
PayPal projects that its revenue will grow by 17% on a neutral monetary basis, and earnings per share will rise by corresponding amounts during the year, while it estimates that it will add 50 million new active accounts.
PayPal (PYPL) has performed well for the past year. PYPL stock went up by 27.65% in the last six months, while PYPL has surged by 109.78% since the end of last year. PYPL’s quarterly performance is currently 34.16%, and it has gained 8.62% in the last month. This week’s performance is currently reading 9.55%.