PayPal shares rose as much as 13% in extended trading on Tuesday after the financial services firm issued stronger-than-expected second-quarter results. In its earnings materials PayPal said it had entered into an information-sharing agreement on value creation with Elliott Management.
“As one of PayPal’s largest investors, with an approximately $2 billion investment, Elliott strongly believes in the value proposition at PayPal. PayPal has an unmatched and industry-leading footprint across its payments businesses and a right to win over the near- and long term,” Elliott Managing Partner Jesse Cohn was quoted as saying in an PayPal earnings presentation. The news comes a day after Elliott said it had become the top investor in social-network operator Pinterest.
Here’s how PayPal did in the second quarter:
Earnings: 93 cents per share, adjusted, vs. 86 cents per share as expected by analysts, according to Refinitiv.Revenue: $6.81 billion, vs. $6.79 billion as expected by analysts, according to Refinitiv.
PayPal announced a “comprehensive evaluation of capital return alternatives” as it said it revealed a $15 billion share buyback program. The company said it’s seeking a replacement for Mark Britto, its chief product officer for the past two years. Britto will retire later this year.
For the full year, PayPal said it expects $3.87 to $3.97 in adjusted earnings per share. Analysts polled by Refinitiv had expected $3.82 per share.
Notwithstanding the after-hours move, PayPal shares had fallen 52% so far this year.
Executives will discuss the results with analysts on a conference calls starting at 5 p.m. ET.
This story is developing. Please check back for updates.