PayPal missed Wall Street estimates for first-quarter revenue on Tuesday, overshadowing the payments giant's profit beat and sending its shares down 3.2% before the bell.

For the second quarter, PayPal issued better-than-expected guidance, forecasting adjusted earnings per share of $1.29 to $1.31, above the average analyst estimate of $1.21. Transaction margin dollars will increase 4% to 5% to between $3.75 billion and $3.8 billion, the company said.