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What to Expect from Square's (SQ) Q4 Earnings, Revenue & Payment Volume

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Shares of Square (SQ - Free Report) popped 1.13% during regular trading hours Tuesday in a possible sign that investors might expect good things from the company’s fourth-quarter financial results that are due out after the closing bell Wednesday.

Overview

Square sells multiple point-of-sale products, as well as software, website services, and inventory and employee management solutions. The financial tech firm’s Square Capital leg provides business financing and loans, as CEO Jack Dorsey—who also runs Twitter —tries to expand the firm into a more complete and diverse financial services operation.

SQ’s peer-to-peer payment platform, the Cash App, has drawn a large amount of attention and competes against offerings from PayPal (PYPL - Free Report) and JP Morgan Chase (JPM - Free Report) . Users can now even open Visa (V - Free Report) debit cards connected only to their Cash App balance. Square has also bolstered its software development kit, which could help it attract larger customers and enter more industries as the fintech industry grows as a whole.

Shares of SQ have climbed roughly 37% to start 2019 and outperformed the likes of Amazon (AMZN - Free Report) , Facebook , and other tech powers. Despite the firm’s 2019 jump, SQ stock closed regular trading Tuesday at $78 a share, which marked a 23% downturn to its 52-week high. This gives shares of Square room to run heading into Q4 earnings.

Q4 Outlook

Square’s Q4 revenues are projected to soar 47.4% to reach $908.21 million, based on our current Zacks Consensus Estimate. Investors should note that this would fall just shy of the third quarter’s 51% growth and match the year-ago period’s top-line expansion. SQ’s full-year revenues are projected to climb by a similar percentage to touch $3.26 billion.

More specifically, our current NFM estimate calls for the company’s gross payment volume to surge 28% and hit $22.97 billion. This would nearly match Q3’s 29% climb that was driven by strong performances from Instant Deposit, Cash Card, Caviar food delivery, and Square Capital.

Meanwhile, Square’s adjusted quarterly earnings are expected to soar 62.5% to reach $0.13 a share, with its full-year EPS figure projected to skyrocket 70.4%.

Bottom Line

Square is currently a Zacks Rank #2 (Buy) based on its recent earnings estimate revisions activity. The company also rocks “A” grades for Growth and Momentum in our Style Scores system.

Square is scheduled to release its Q4 and full-year earnings results after the closing bell Wednesday. So make sure to head back to Zacks for a complete breakdown of the company’s actual metrics.

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