PayPal’s has a new interim CFO.
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said late Tuesday that it had named John Rainey as its chief financial officer. Rainey currently holds the same position at
Holdings, but his move isn’t the red flag analysts are watching ahead of the payment-processing company’s earnings.
Rainey steps into his new role on June 6. PayPal (ticker: PYPL) said Rainey will remain with it until late May to make possible an orderly transition. Gabrielle Rabinovitch, senior vice president for corporate finance and investor relations, will serve as interim CFO while PayPal looks for a permanent successor.
“I am leaving knowing PayPal is well positioned for the future. Gabrielle Rabinovitch is an extremely well-respected and accomplished colleague, and she has my full confidence to assume the CFO role as the Board conducts its search,” Rainey said in a news release on Tuesday.
The payment-processing company’s first-quarter 2022 revenue and earnings face difficult comparisons against their year-ago pandemic-driven e-commerce peak. But analysts aren’t as concerned about Rainey’s exit as they are about the company’s guidance, or lack thereof, since reporting fourth-quarter 2021 earnings back in February.
PayPal said that it expects to earn between $4.60 and $4.75 a share in fiscal 2022. Analysts expect $4.64, according to FactSet.
“Although the departure of CFO John Rainey comes as a surprise, we think (interim) CFO Gabrielle Rabinovitch knows the company well and is a sourceof stability and confidence, but we are concerned about PYPL’s ability to meet its guidance,” Susquehanna Financial Group analyst James Friedman wrote in a research note Wednesday morning. Additionally, the company could face challenges from concerns related to…