PayPal Holdings Inc. PYPL, +1.07% disclosed Tuesday that its next earnings report will get a big boost from strategic investments, after the payments company invested in Latin American e-commerce company MercadoLibre Inc. MELI, -1.13% PayPal said in a filing with the Securities and Exchange Commission that its strategic investments would add $218 million, or 14 cents a share, to its standard second-quarter earnings, which are expected to be announced this month. PayPal invested $750 million in MercadoLibre earlier this year, and claimed an additional 8 cents a share in the first quarter, but projected just a penny a share from strategic investments in the second quarter. MercadoLibre shares have been hot, though, rising 26.8% in the past three months and 118.7% so far this year. Analysts on average currently expect PayPal to report adjusted earnings of 69 cents a share, according to FactSet, after PayPal projected 68 cents to 70 cents a share.
Date: July 11, 2019
Source: Market Watch