A sign is posted outside of the PayPal headquarters in San Jose, California.
Justin Sullivan | Getty Images
PayPal on Thursday said the coronavirus outbreak could have a negative impact on its revenue expectations, and warned that revenue for the first quarter of this year would be toward the lower end of the guidance it gave when it reported earnings in January.
The company said it now expects Q1 revenue to hit the lower end of its range of $4.78 billion to $4.84 billion. PayPal left its first quarter GAAP and non-GAAP EPS guidance the same.
"We currently estimate the negative impact from COVID-19 to be an approximate one percentage point reduction, on both a spot and foreign currency-neutral basis, to PayPal's year-over-year revenue growth for the first quarter, as compared to the revenue guidance provided on January 29, 2020," the company said in a press release.
PayPal said that international e-commerce activity has been affected by the flu-like virus.
U.S. stocks have been plunging this week on renewed fears that the coronavirus will slow global economic growth. More than 81,400 people have been sickened globally and at least 2,770 have died from the virus.
PayPal's release comes after Microsoft on Wednesday lowered its guidance due to coronavirus concerns. Apple also reported last week it did not expect to reach its own quarterly revenue guidance due to the fast-spreading virus.
PC makers have also indicated this cycle will be impacted by the coronavirus. HP warned during its fiscal first-quarter call on Monday that production restraints may delay business upgrades to the second half of 2020. Lenovo also warned that supplies would be constrained in Q1.
Investors likely will hear from Dell, the third-largest PC vendor, when it reports earnings Thursday afternoon.
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February 27, 2020 at 08:56PM
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PayPal warns coronavirus will have a negative impact on revenue expectations for the quarter - CNBC
"impact" - Google News
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