What to Expect When Square Reports After the Close
Square is scheduled to release its most recent quarterly results after the markets close on Thursday, and analysts are looking for strong year-over-year growth in revenues.
Square Inc. (NYSE: SQ) is scheduled to release its most recent quarterly results after the markets close on Thursday. The consensus estimates are calling for $0.16 in earnings per share (EPS) and $557.07 million in revenue. In the second quarter of last year, Square posted $0.13 in EPS and $385.43 million in revenue.
In terms of guidance for this quarter, the company previously said that it expects to see EPS in the range of $0.14 to $0.16 and revenue between $545 million and $555 million.
In the first quarter, Square said that gross payment volume (GPV) increased 27% year over year to $22.6 billion. The GPV from larger sellers grew 37% year over year and accounted for 51% of total GPV, up from 47% in the first quarter of 2018.
At that time, transaction-based revenue was $657 million, up 26% year over year, and transaction-based profit was $248 million, up 27%.
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Subscription and services-based revenue totaled $219 million in the first quarter, up 126% year over year. Excluding the acquisitions of Weebly and Zesty, subscription and services-based revenue came to $191 million, up 97% in the same time.
Excluding Thursday’s move, Square had outperformed the broad markets, with its stock up about 43% year to date. In the past 52 weeks, the stock was up about 22.5%.
A few analysts weighed in on Square ahead of the report:
- Citigroup has a Buy rating and a $95 price target.
- Jefferies has a Hold rating with a $78 price target.
- Raymond James has a Market Perform rating.
- Argus has a Buy rating with a $94 target price.
- Wedbush has a Neutral rating.
- Nomura has a Buy rating with a $100 target.
Shares of Square traded up about 3% to $82.97 on Thursday, in a 52-week range of $49.82 to $101.15. The consensus price target is $84.81.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
