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PayPal Drops on Weak Revenue Guidance

Shares of PayPal (PYPL) are down 5% after hours despite the company’s earnings beat, as revenue guidance for the full year fell below expectations and revenue for the current quarter came in light.

The electronic payment company reported second quarter earnings of 86 cents per share on revenue of $4.31 billion. Analysts were expecting earnings of 73 cents per share on revenue of $4.33 billion.

The company said it expects to generate full-year revenue between $17.6 billion and $17.8 billion, short of Wall Street’s $17.99 billion estimate.

“PayPal delivered another solid quarter, and consequently we are raising EPS guidance for the year. Net new active accounts increased by a record 41 million over the last 12 months, and engagement per active account once again increased by 9% to 39 times a year,” said CEO Dan Schulman.

For the year, the company now expects to earn between $3.12 and $3.17 per share, ahead of Wall Street’s $3.03 per share estimate.