PayPal Holdings shares plunged by almost 9% during premarket trading on Thursday after the company’s second-quarter financial results fell short of expectations.
The company reported an adjusted operating margin of 21.4% for the quarter, below estimates of 22% as indicated by data from Refinitiv IBES. Following the release of the report, the online payments company revealed its decision to reduce its adjusted margin forecast for the full year, causing concern for investors.
Revenue for the three months ended June 30 was $7.3 billion, compared to $6.8 billion last year. Still, the company’s operating margin stood at 21.4%, falling short of a forecasted 22%.
For the third quarter, PayPal expects a revenue of about $7.4 billion, above analysts’ estimates of $7.32 billion. The company’s forecasted adjusted profit per share for Q3 is in the range of $1.22 and $1.24, with analysts expecting $1.22 per share.