PayPal Holdings Shares Rise 11% on Confirmed Elliott Stake, Leadership Shuffle, $15 Billion Stock Buyback

By Denny Jacob

PayPal Holdings Inc. shares rose 11% to $99.85 in after-hours trading Tuesday after Elliott Management Corp. confirmed a $2 billion stake in the company.

Jesse Cohn, managing partner at the activist investor, said Elliott strongly believes in the value proposition at PayPal. PayPal said it is entering into an information sharing agreement with Elliott to continue collaboration opportunities.

PayPal said it named Blake Jorgensen chief financial officer and said it is conducting a search for a new product chief following Mark Britto's plans to retire at the end of the year.

The news helped blunt the muted outlook for the third quarter and fiscal 2022. PayPal guided for third-quarter revenue to reach $6.80 billion, below analysts' expectations of $7.02 billion, and adjusted earnings per-share between 94 cents to 96 cents.

For fiscal 2022, PayPal guided for revenue to reach $27.85 billion, up 10% on a spot basis and 11% on a foreign exchange neutral basis. It previously forecast revenue to grow 11% to 13% on a spot and a foreign exchange neutral basis.

Adjusted earnings per-share in fiscal 2022 are expected to range from $3.87 to $3.97, up from its prior forecast of $3.81 to $3.93.

PayPal also said it is including a new $15 billion share repurchase authorization and an evaluation of capital return alternatives.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

August 02, 2022 17:14 ET (21:14 GMT)

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