After Mastercard, Paypal Sees Revenue Hit From Coronavirus Outbreak
Mastercard Inc said its net revenue in the first quarter would take a hit of 2%-3% over its previous forecast if the coronavirus outbreak persists through the quarter.
Photo Credit :
Payments processor PayPal Holdings Inc said on Thursday it expects first-quarter revenue to be at the lower end of its previously forecast range, blaming disruptions caused by the coronavirus outbreak and sending its shares down 1.5%.
"We currently estimate the negative impact from COVID-19 to be an approximate one percentage point reduction, to PayPal's year-over-year revenue growth for the first quarter," the company said in a statement.
The virus, which has killed more than 2,700 and infected 78,000 people so far in China, has slammed the brakes on the world's second-largest economy. It has spread to 44 other countries, raising fears of a global pandemic.
The company, which had forecast first-quarter revenue of $4.78 billion-$4.84 billion last month, said the global spread of the virus had affected international cross-border e-commerce activity.
PayPal said it is reaffirming its first-quarter earnings per share outlook at $0.16-$0.21, and adjusted earnings of $0.76-$0.78.
On Monday, Mastercard Inc said its net revenue in the first quarter would take a hit of 2%-3% over its previous forecast if the coronavirus outbreak persists through the quarter.
Mastercard and rival Visa Inc were down about 2% in the premarket trade.