Santa Ana-based TTM Technologies (NASDAQ:TTMI) Inc., a printed circuit board producer, and San Jose’s digital payments company, Paypal Holdings (NASDAQ:PYPL) Inc., both reported third-quarter earnings that beat Wall Street expectations.
TTM Technologies disclosed a Q3 loss of $37.1 million or 36 cents per share. However, when adjusted for asset impairment and amortization costs, earnings rose to 43 cents per share, exceeding the average estimate of 28 cents per share by Zacks Investment Research’s three analysts. Further, TTM’s Q3 revenue of $572.6 million marginally surpassed the predicted $571.8 million. Looking ahead, TTM expects earnings per share for the fiscal fourth quarter ending in December to range between 34 to 40 cents and forecasts a revenue of $550 million to $590 million.
On the other hand, Paypal Holdings announced a third-quarter net income of $1.02 billion or 93 cents per share. After adjusting for one-time gains and costs, the earnings increased to $1.30 per share, outperforming Wall Street expectations of $1.22 per share as surveyed by Zacks Investment Research among 16 analysts. Additionally, Paypal reported a revenue of $7.42 billion for the period, exceeding the forecasted $7.39 billion by 14 analysts in a Zacks survey. For the December quarter ending, Paypal predicts earnings to be $1.36 per share and anticipates full-year earnings to be $4.98 per share.
As we delve into the financial performance of Paypal Holdings. The company’s aggressive buyback of shares and the expectation of net income growth this year, highlight the management’s confidence in the financial health and future prospects of the company.
Paypal’s market cap stands at a substantial 56.72B USD, and the P/E ratio is at a modest 14.31, indicating reasonable pricing relative to its earnings. Over the last twelve months up to Q2 2023, Paypal’s revenue growth was 8.21%, showcasing a steady increase in the company’s top-line figures.
The company’s stock has faced some challenges recently, trading near its 52-week low. However, with analysts predicting profitability this year and the company’s proven profitability over the last twelve months, there’s potential for a turnaround.
