What to Expect When Square Reports After the Close

August 1, 2019 by Chris Lange

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%.

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.