What Analysts Are Saying About Square After Earnings
When Square released its second-quarter earnings report on Wednesday, overall the results were impressive and the stock saw a handy gain.
When Square Inc. (NYSE: SQ) released its second-quarter earnings report after the markets closed on Wednesday, overall the results were impressive. The stock saw a handy gain, counteracting what has been a somewhat weak 2016. 24/7 Wall St. has included some of the key highlights from the earnings report, as well as what analysts are saying after the fact.
The company said that it had a net loss of $0.08 per share on $439 million in revenue. The consensus estimates from Thomson Reuters called for a net loss of $0.11 per share on revenue or $405.7 million. Square posted EPS of $0.20 in EPS and $310 million in revenue in the same period of the previous year.
Gross payment volume (GPV) for the second quarter was $12.5 billion, up 42% year over year. New seller growth made up the majority of the GPV increase, while positive dollar-based retention from existing sellers also had a meaningful impact. At the same time, transaction revenue as a percentage of GPV was 2.93%.
Adjusted revenue totaled $171 million, up 54% from last year, also exceeding the high end of previously issued guidance. Starbucks transaction revenue totaled $32.87 million.
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In terms of guidance for the third quarter, Square expects to have revenues in the range of $410 million to $420 million, with adjusted revenue in the range of $167 million to $171 million. Consensus estimates call for a net loss of $0.10 per share on $415 million in revenue for the quarter.
A few analysts weighed in on Square following the release of the earnings report:
- Canaccord Genuity has a Hold rating and raised its price target to $14 from $13.
- CLSA has a Buy rating and raised the price target to $15 from $14.
- Compass Point has a Buy rating and raised its price target to $14.
- Craig-Hallum has a Hold rating and increased its price target to $8 from $7.50.
- Deutsche Bank reiterated a Hold rating.
- Evercore ISI has a Hold rating and raised its price target to $8 from $7.
- S&P reiterated its Hold rating but raised its price target to $12 from $11.
- SunTrust Robinson Humphrey has a Neutral rating and raised price target to $13 from $11.
- Wedbush Securities has a Neutral rating and increased its price target to $10 from $8.
Shares of Square ended trading on Friday down about 1.5% at $11.15, with a consensus analyst price target of $12.92 and a 52-week trading range of $8.06 to $15.91.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
