Shares of PayPal Holdings (PYPL) are down 10% after the financial technology and payments company issued weak guidance for the year ahead.
The company reported better-than-expected fourth-quarter financial results, posting earnings per share (EPS) of $1.48 U.S. compared to $1.36 U.S. that was forecast on Wall Street.
Revenue in the quarter came in at $8.03 billion U.S, which beat analysts’ estimates of $7.87 billion U.S.
While the latest print beat expectations, PayPal provided downbeat guidance, which is pressuring the company’s stock.
The company said that it anticipates full-year earnings of $5.10 U.S. a share, which is below the $5.48 U.S. that analysts had expected.
For the current first quarter, PayPal estimates year-over-year earnings per share growth in the mid-single digits, compared with a consensus forecast of 8.7%.
The latest earnings report comes after PayPal recently announced its intention to layoff 9% of its workforce to help control costs.
PayPal faces growing competition for its payment services from technology giants such as Apple (AAPL) and Alphabet (GOOG / GOOGL).
Before today (Feb. 8), PayPal’s stock had declined 20% over the last 12 months and was trading at $63.24 U.S. per share.
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