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 per cent.
“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 per cent-3 per cent over its previous forecast if the coronavirus outbreak persists through the quarter.
Mastercard and rival Visa Inc were down about 2 per cent in the premarket trade.