SQ stock earnings, revenue and payout volume misses estimates upon acquisition after payout

SQ stock earnings, revenue and payout volume misses estimates upon acquisition after payout

square-parent Block (SQ) reported earnings, revenue, operating profit and gross payments volume for the March quarter that missed analysts’ estimates amid falling expectations. But SQ stock rose as analysts focused on the consumer Cash app and its prospects under the Afterpay acquisition.




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San Francisco-based Block reported fourth-quarter results after the market closed Thursday. Square stock soared 4.4% to 99.76 in early trading in the stock market today.

While Square stock missed some metrics, “It’s important that Cash App has started to reaccelerate, with gross profit up 11% sequentially and strong ‘health’ metrics, including 1.5 million consumers using direct deposit,” MoffettNathanson analyst Lisa Ellis said in a statement. .

Square earnings for the first quarter were 18 cents per share on an adjusted basis, down 56% from the prior year period. Analysts had forecast earnings of 20 cents per share.

SQ stock: income below expectations

Square said revenue fell 21% to $3.96 billion as Cash App transactions for digital cryptocurrency Bitcoin fell. Analysts had forecast revenue of $4.14 billion.

Financial analysts also see operating profit as a key metric for SQ stock. Operating profit was $1.29 billion, up 34% from estimates of $1.30 billion.

Gross payment volume from merchant customers increased 31% to $43.5 billion from estimates of $45.39 billion.

The results include Afterpay, a recently acquired Australian consumer lending start-up.

After-payment of profit contributions

In a letter to shareholders, management said, “Afterpay contributed $92 million in gross profit during the months of February and March, with $46 million in gross profit recognized in Cash App and Square.”

Excluding Afterpay, the company said “gross profit was $1.20 billion, up 25% year-over-year.”

In Thursday’s regular session, Square stock fell 10.5% amid a large selloff on the Nasdaq. SQ stock fell 50% in 2022 before the earnings report.

If you are new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns for issues like SQ stocks is one of the keys to investing guidelines.

Follow Reinhardt Krause on Twitter @reinhardtk_tech For updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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