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PayPal earnings: 46 cents per share vs. 43 cents EPS expected

    • PayPal posted quarterly results that topped expectations.
    • The company unveiled a number of partnerships, including one with Baidu in China.
    • The company also raised its guidance.

    PayPal shares gained in after-hours trade after the company posted better-than-expected earnings and guidance on Wednesday.

    Here's how the company did compared with what Wall Street expected:

    • EPS: 46 cents vs. 43 cents expected, according to Thomson Reuters
    • Revenue: $3.14 billion vs. $3.09 billion expected, according to Thomson Reuters

    PayPal subsidiary Venmo more than doubled its total payment volume, growing 103 percent year over year.

    The stock gained more than 3 percent in extended trading after the company's announcement on Wednesday.

    The company also raised its guidance for the full year. It now expects adjusted earnings per share between $1.80 and $1.84 on revenue between $12.78 billion and $12.88 billion. Analysts had previously forecast earnings of $1.78 per share on $12.72 billion in revenue, according to Thomson Reuters consensus estimates.

    PayPal's current-quarter guidance also came in above Wall Street expectations. The company expects earnings per share between 42 cents and 44 cents on revenue between $3.14 billion and $3.19 billion. Analysts expected earnings of 42 cents per share on revenue of $3.13 billion, according to Thomson Reuters consensus estimates.

    PayPal announced a number of partnerships that would allow the company to extend its international reach. A deal with Baidu in China was among the agreements the company announced.

    Shares of PayPal have surged more than 48 percent in 2017, far outperforming the S&P 500's 10 percent gain. The stock set a new all-time intraday high of $59.38 on July 20.

    PayPal ascended to a dominant position in the online payments arena since its split with eBay in 2015. After initially resisting pressure from activist investor Carl Icahn to separate from PayPal, former eBay CEO John Donahoe acquiesced in 2014.

    With Dan Schulman at its helm, PayPal eclipsed eBay both in size and rate of growth since the breakup. PayPal's market cap of $69.9 billion is now close to doubling eBay's, at $38.8 billion.

    PayPal's comfortable place in the online payments market has been further buoyed by a slew of recent positive headlines.

    In June, wealth management firm Robert W. Baird telegraphed its confidence in PayPal by raising price expectations and reiterating its "outperform" rating for the company. The next month, PayPal penetrated Apple's tightly held e-commerce market by scoring a deal allowing iPhone and iPad owners to use PayPal in the iTunes App Store. And the following week, PayPal's partnership with Visa expanded to Europe.