Cheetah Net Supply Chain Service Inc
Change company Symbol lookup
Select an option...
CTNT Cheetah Net Supply Chain Service Inc
LASE Laser Photonics Corp
GFR M3-Brigade Acquisition III Corp
PCT Purecycle Technologies Inc
UPST Upstart Holdings Inc
CPSI Computer Programs and Systems Inc
TKNO Alpha Teknova Inc
BTM Bitcoin Depot Inc
RC Ready Capital Corp
NEOV NeoVolta Inc

Consumer Discretionary : Distributors |
Company profile

Cheetah Net Supply Chain Service Inc. is a supplier of parallel-import vehicles in the United States to be sold in the People’s Republic of China (PRC) market. The Company and its wholly owned subsidiaries are primarily engaged in the parallel-import vehicle dealership business. In the PRC, parallel-import vehicles refer to those purchased by dealers directly from overseas markets and imported for sale through channels other than brand manufacturers’ official distribution systems. The Company purchases automobiles, primarily luxury brands such as Mercedes, BMW, Porsche, Lexus, and Bentley, from the U.S. market and resells them to its customers, including both U.S. and PRC parallel-import car dealers. The Company holds 100% of the equity interests in the subsidiaries, such as Allen-Boy International LLC, Canaan International LLC, Pacific Consulting LLC, Canaan Limousine LLC, Entour Solutions LLC, Spirit Solutions LLC, and Cheetah Net Logistics LLC.

Closing Price
Day's Change
-0.01 (-0.52%)
B/A Size
Day's High
Day's Low

10-day average volume:

PayPal logs earnings beat, but stock falls as margin talk underwhelms

7:36 am ET May 9, 2023 (MarketWatch)

By Emily Bary

Company ups full-year revenue expectations but says this partly reflects better growth visibility for a less profitable part of the business

PayPal Holdings Inc. beat estimates with its quarterly results Monday, but its shares were headed lower in after-hours action as Wall Street unpacked how much of PayPal's growth is coming from a lower-margin part of the business.

While PayPal (PYPL) executives boosted their profit forecast for the full year and spoke of more upbeat revenue expectations, they also now project at least 100 basis points of operating-margin expansion this year. The company's prior outlook was for about 125 basis points.

PayPal is best known for its checkout button on websites, but the company also has an "unbranded" business, called Braintree, in which it processes payments for partners in a more behind-the-scenes way, similar to Stripe and Adyen NV . Management said that its more upbeat view of revenue for the year comes in part from greater visibility into the lower-margin Braintree business, which is one reason for the change in margin expectations.

"While the beat on the quarter and guidance on revenue growth were constructive, initial focus from investors is around the continued impact of outsized unbranded processing growth on margin/gross-profit growth," Wolfe Research analyst Darrin Peller wrote in a note to clients.

Chief Executive Dan Schulman noted that PayPal was "focused on substantially improving the margin structure of our unbranded business," with plans to add more value-added services to the platform.

Shares of PayPal were down nearly 6% in after-hours trading Monday.

The margin commentary around unbranded checkout overshadowed other elements of PayPal's report, including a beat on the latest metrics and an increase to the profit outlook for the full year.

PayPal generated first-quarter net income of $795 million, or 70 cents a share, compared with $509 million, or 43 cents a share, in the year-earlier period. On an adjusted basis, PayPal earned $1.17 a share, whereas analysts were modeling $1.10 a share.

Revenue rose to $7.04 billion from $6.48 billion, whereas the FactSet consensus was for $6.98 billion.

Schulman noted that changes PayPal has been making to its platform are paying off, while overall spending trends have positively surprised.

"When you have scale like ours, little things over time make a big difference," Schulman told MarketWatch. "Clearly the things we're doing are making a difference."

He noted that general e-commerce growth also seems to be faring better than he expected, in another tailwind for PayPal.

There's been "more discretionary spend come into play," with "people beginning to turn focus a bit more toward goods," Schulman said. A big trend coming out of the pandemic was that people were spending more of their budget on experiences as the economy reopened.

Schulman now thinks PayPal (PYPL) could see high-single-digit revenue growth for the year, whereas it previously offered a "planning assumption" for mid-single-digit growth, on a currency-neutral basis.

On the earnings call, Schulman added that "the reason we are taking up our expectations for what we think our revenue growth will be" is that PayPal is "seeing distinct improvements take place in the market."

During the first quarter, the company logged $354.5 billion in total payment volume, or the value of transactions flowing through its system. Analysts had been expecting $344.9 billion in TPV.

See also: PayPal CEO's 'unusual' $2 million stock purchase is 'certainly a positive' signal

For the second quarter, PayPal expects revenue to increase 6.5% to 7%. The FactSet consensus of $7.259 billion implies 6.6% growth. The company also expects adjusted earnings per share of $1.15 to $1.17, while the FactSet consensus was for $1.17 a share.

PayPal also raised its full-year adjusted-earnings forecast to about $4.95 a share, up from a prior forecast of $4.87 a share. The FactSet consensus was for $4.89 a share.

-Emily Bary

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.


(END) Dow Jones Newswires

May 09, 2023 07:36 ET (11:36 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.

Earnings Calendar and Events Data provided by |Terms of Use| © 2023 Wall Street Horizon, Inc.

Market data accompanied by is delayed by at least 15 minutes for NASDAQ, NYSE MKT, NYSE, and options. Duration of the delay for other exchanges varies.
Market data and information provided by Morningstar.

Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses.
Please read Characteristics and Risks of Standard Options before investing in options.

Information and news provided by ,, , Computrade Systems, Inc., ,, and

Copyright © 2023. All rights reserved.