11:01 AM EDT, 07/30/2024 (MT Newswires) -- Shares of PayPal ( PYPL ) climbed intraday Tuesday after the digital payments company reported stronger-than-expected increases in second-quarter results and sweetened its 2024 earnings guidance.

Revenue rose to $7.89 billion for the three months ended June 30 from $7.29 billion the year earlier and topped the $7.82 billion average analyst estimate on Capital IQ. Adjusted EPS advanced to $1.19 from $0.87 year over year and beat the market view for $0.99. Shares of PayPal ( PYPL ) were up about 8% in Tuesday trade.

"We delivered our best transaction margin dollar growth since 2021, and we are making steady progress on our strategic transformation, while investing in innovation and operating more efficiently," Chief Executive Alex Chriss said in a statement.

Transaction margin dollars increased 8% to $3.61 billion during the second quarter and was up more than 300 basis points from the first quarter, Chief Financial Officer Jamie Miller told analysts on a conference call, according to a Capital IQ transcript.

"Higher interest on customer balances, branded checkout, Braintree and Venmo were the largest contributors to year-over-year growth," Miller said.

For the full year, PayPal ( PYPL ) now expects adjusted EPS to increase in the low- to mid-teens percentage range from $3.83 reported for fiscal 2023, compared with mid- to high-single-digit growth previously expected. The Capital IQ consensus is for normalized EPS of $4.27. Chriss told analysts the company is "making meaningful progress" toward achieving "long-term durable and profitable growth."

PayPal ( PYPL ) raised its full-year guidance for transaction margin dollars to now reflect year-over-year growth in the low- to mid-single-digit percentage range, according to Miller. She said on the last quarter's conference call in April that it would be "slightly positive."

The revised EPS guidance "reflects outperformance in the second quarter as well as a slightly more positive view of the second half of the year with some strategic reinvestment into growth initiatives," she told analysts Tuesday.

The company is guiding for third-quarter revenue growth in mid-single digits from $7.42 billion in the prior year's third quarter. Non-GAAP EPS growth is pegged in the high-single-digit range, compared with $0.98 last year. Analysts were modeling for revenue of $7.95 billion and normalized EPS of $1.04 for the third quarter.

Price: 64.02, Change: +5.08, Percent Change: +8.62