23 Oct

eBay, LRCX, and PYPL Stock Movements after Earnings

WRITTEN BY Aditya Raghunath

Tech stocks eBay (EBAY), PayPal (PYPL), and Lam Research (LRCX) have returned -2.5%, 8.6%, and 5.5%, respectively, in after-hours trading today.

All three companies reported earnings after the market closed. Let’s see what’s driving these stocks after-hours today—and what investors can expect now that earnings are out.

eBay reports sales of $2.65 billion in Q3

Leading e-commerce platform eBay reported revenue of $2.65 billion for the third quarter. Its gross merchandise volume or GMV fell 4% to $21.7 billion. eBay’s adjusted net income was $563 million or $0.67 per share.

In the prior-year quarter, eBay reported sales of $2.65 billion and EPS of $0.56. Analysts expected the company to report sales of $2.64 billion with EPS of $0.64 in the September quarter. The company expected revenue between $2.77 billion and $2.82 billion in the December quarter, with EPS between $0.73 and $0.76.

Analysts expected revenue of $2.85 billion and earnings of $0.76 in Q4. It seems like eBay’s financial estimates for Q4 are lower than Wall Street’s forecast, and the difference has driven the stock lower today.

PayPal and LRCX stocks move higher

PayPal reported sales of $4.38 billion and adjusted earnings of $0.61 for the third quarter. In the prior-year period, PayPal sales stood at $3.68 billion with EPS of $0.58. Analysts expected PayPal’s sales at $4.35 billion with EPS of $0.52 in Q3.

PayPal beat Wall Street estimates today, and its total payment volume (or TPV) rose from $143 billion in the third quarter of 2018 to $179 billion in the third quarter of 2019. According to this Market Watch report, analysts estimated TPV at $177.4 billion.

The report states, “Venmo processed $27 billion in volume. Total peer-to-peer volume for the entire family of PayPal products was $51 billion and represented 28% of TPV.”

Market Watch further explains, “This was the first time that the company processed more than 1 billion transactions per month over a quarter. The company disclosed that it added 9.8 million net new active accounts in the third quarter and that eBay volume represented 8% of total TPV in the period.”

PayPal has forecast revenue for 2019 between $17.7 billion and $17.76 billion. Comparatively, analysts estimate sales to reach $17.72 billion this year.

PayPal introduced Xoom, an international money transfer service, in July 2019. This service will be available in 32 countries across Europe. PayPal also has access to China’s huge digital payments market with the acquisition of GoPay. The stock has enough drivers to end 2019 on a high.

Lam Research stock, eBay, and PayPal after earnings

LRCX is also moving higher today after the company reported revenue of $2.17 billion with earnings of $3.09 in the September quarter. In the prior-year quarter, LRCX reported sales of $2.33 billion and EPS of $3.36.

Analysts estimate the Lam Research would post revenue of $2.16 billion and EPS of $3.01 in the first quarter of fiscal 2020, which ends in June.

eBay has now gained 30% year-to-date and is trading 10% below Wall Street’s average target estimates. Comparatively, PYPL and LRCX have returned 22.4% and 77%, respectively.

The other major tech movers in after-hours include Align Technology, F5 Networks, and Xilinx. These tech stocks have returned 8.1%, 5.2%, and -2.2%, respectively, in after-hours today.

Correction: An earlier version of this article stated eBay’s revenue as $2.6 billion rather than $2.65 billion for Q3.

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