PayPal Forecast Disappoints as Acquisitions Weigh on Profit
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PayPal Holdings Inc. gave an earnings forecast for the current quarter that missed analysts’ estimates as a string of acquisitions and partnerships weighs on profit.
For the first quarter, PayPal said it expects adjusted earnings per share of 76 cents to 78 cents, lower than the 82 cents analysts had estimated on average. The recent acquisition of Honey Science, PayPal’s largest ever, will dampen earnings this year but is expected to contribute profit next year, John Rainey, the chief financial officer, said on a conference call after the report.