Investing.com -- PayPal (NASDAQ:PYPL) has projected adjusted earnings per share for its second quarter that topped analysts’ estimates, but the online payments group flagged that it was leaving its full-year financial guidance because of lingering economic uncertainty.
Recent data has suggested that consumer sentiment has deteriorated and inflation expectations have risen following the announcement of aggressive U.S. tariffs on a host of countries earlier this month, potentially signaling that many households may choose to rein in expenditures to protect their pocket books.
Although many of the levies have since been postponed, several businesses have also said they are facing a murky operating environment that is making it more difficult to plan out future investment decisions.
Against this backdrop, PayPal forecast current-quarter per-share income in a range of $1.29 to $1.31, versus Bloomberg consensus estimates of $1.22. But the company said that it still sees adjusted earnings per share of $4.95 to $5.10 over the entire fiscal year, citing "uncertainty in the global macro environment."
PayPal called its first-quarter performance "strong", with adjusted profit per share rising to $1.33. Analysts had anticipated $1.16.
However, total payment volumes increased by 3.3% versus a year ago to $417.21 billion, compared with expectations of $419.23 billion. Net revenue of $7.79 billion was also slightly below estimates of $7.85 billion.
Shares in PayPal inched lower in premarket U.S. trading on Tuesday.