square parent to forbid (mint) reported March quarter earnings, revenue, operating profit and total payout volume below analyst estimates amid lower expectations. But SQ stock jumped as analysts focused on consumer cash app and its outlook amid the Afterpay acquisition.
San Francisco-based Block reported fourth-quarter earnings after the market closed Thursday. Square stock rose 4.4% to 99.76 in early trading on stock market today.
While Square’s stock missed some metrics, Lisa Ellis, an analyst at MoffettNathanson said in a report, “Most importantly, App Cash began to accelerate, with total earnings up 11% sequentially, and robust ‘health’ metrics including 1.5 million consumer using direct deposit. .
Many analysts are looking forward to holding Square Investor Day on May 18. The company is expected to update its long-term outlook with the acquisition of Afterpay.
First-quarter earnings per share were 18 cents per share on an adjusted basis, down 56% from the same period last year. Analysts had expected earnings of 20 cents per share.
SQ Inventory: Revenue is below expectations
Square said revenue fell 21% to $3.96 billion as cash app transactions for cryptocurrency bitcoin declined. Analysts expected revenues of $ 4.14 billion.
Financial analysts also see operating income as a key measure for SQ stock. Operating income came in at $1.29 billion, up 34%, versus estimates of $1.30 billion.
Total payments from merchant customers increased 31% to $43.5 billion, versus estimates of $45.39 billion.
The results included the recently acquired Australian-based consumer lending startup Afterpay.
Payment of subscriptions to profits
In a letter to shareholders, management said: “Afterpay contributed $92 million in gross profits in February and March, with $46 million in gross profits reported in both Cash App and Square.”
Excluding Afterpay, the company said, “Total profit was $1.20 billion, an increase of 25% year over year.”
In Thursday’s regular session, Square’s stock fell 10.5% amid a broad sell-off in the Nasdaq. SQ stock is down 50% in 2022 heading into the earnings report.
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