PayPal (PYPL) and Starbucks (SBUX) released their latest earnings reports after closing bell tonight. PayPal reported adjusted earnings of 42 cents per share on $2.98 billion in revenue, while Wall Street was looking for 42 cents per share in earnings and $2.98 billion in revenue. In the same quarter a year ago, the digital payments processor reported 36 cents per share and $2.6 billion in revenue.
Starbucks posted adjusted earnings of 52 cents per share on $5.73 billion in revenue, compared to the Street’s estimates of 52 cents per share in earnings and $5.85 billion in revenue. In the same quarter a year ago, the coffee shop chain reported 46 cents per share in earnings and $5.37 billion in sales.
PayPal shares fall
PayPal’s GAAP earnings rose to 32 cents per share from 30 cents per share in the year-ago quarter. The company added 5.4 million active customer accounts during the quarter and recorded a 23% increase in payment transactions, which rose to 1.8 billion. Total payment volume rose 22% to $99 billion.
PayPal has been trying to gain a foothold in offline payments, and it did make some headway last year thanks to agreements it struck with MasterCard and Visa. Consumers are now able to use their PayPal accounts to pay for items at brick-and-mortar stores.
Shares of PayPal fell by as much as 2% to $40.67 in after-hours trading tonight.
Starbucks’ same store sales disappoint
Starbucks’ GAAP earnings rose to 51 cents per share from 46 cents per share a year ago. Same store sales rose 3% year over year, while analysts were looking for an increase of 3.8%. U.S. same store sales rose 3%, missing the consensus of 4.2% growth.
The company has been making changes to improve its results, such as improvements to its customer loyalty program. Starbucks also added incentives for paying via mobile devices, which has proven popular with its customers. The mobile order and pay feature accounted for 5% of the company’s transactions in the U.S. during the third quarter.
