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Will Portfolio Strength Benefit Square's (SQ) Q3 Earnings?

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Square, Inc. (SQ - Free Report) is set to report third-quarter 2021 results on Nov 4.

The company’s portfolio strength is expected to have contributed well to the third-quarter performance.

Its friendly ecosystem, which enables sellers to combine software, hardware and payment services to accept payments from customers, is expected to have helped maintain solid momentum across sellers.

All the above-mentioned factors are anticipated to have driven Square’s Gross Payment Volume (GPV) growth in the third quarter.

The Zacks Consensus Estimate for GPV for the third quarter is pegged at $45.5 billion, suggesting growth of 43.5% from the year-ago reported figure.

Click here to know how the company’s overall third-quarter performance is expected to have been.

Square, Inc. Revenue (TTM)

 

Square, Inc. Revenue (TTM)

Square, Inc. revenue-ttm | Square, Inc. Quote

Portfolio Strength: Key Catalyst

The impacts of Square’s portfolio strength are anticipated to get reflected in the third-quarter results.

In the to-be-reported quarter, the company introduced a suite of financial tools called Square Banking, which offers a range of banking solutions to small business owners.

Moreover, it acquired Crew in a bid to bolster workforce management solutions and offer a better team communication platform to business owners.

The company launched Square Invoices Plus in the United States, the U.K., Canada, Ireland, Japan and Australia to help businesses organize their invoicing requirements, get faster payments, and gain customers.

Square made Cash App Pay available to its sellers across the United States through a software update. They can now accept payments made by customers using their Cash App account either by scanning the QR code at checkout or by clicking a button on their mobile devices.

The company unveiled Square Register in Canada, which is likely to have aided it in gaining strong momentum across sellers in Canada.

Apart from the latest introductions, Square’s other product lines such as Square Terminal, Instant Deposits, Cash Card, Square Register, Square Reader, Square Stand and API platforms are expected to have benefited third-quarter revenues.

Additionally, the growing adoption of Cash App in the bitcoin space is likely to have aided growth in Square’s bitcoin revenues. This, in turn, is expected to have continued to drive top-line growth in the to-be-reported quarter.

The impacts of all the above-mentioned products are expected to get reflected in the company’s third-quarter GPV.

Zacks Rank & Stocks to Consider

Currently, Square carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Trimble (TRMB - Free Report) , Applied Materials (AMAT - Free Report) and GoDaddy (GDDY - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rates for Trimble, Applied Materials and GoDaddy are currently projected at 10%, 19.4% and 25%, respectively.


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