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Factors Setting the Tone for Block's (SQ) Earnings in Q4
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Block, Inc. (SQ - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 24.
For the fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $3.98 billion, suggesting growth of 26.05% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the fourth-quarter bottom line is pegged at earnings of 19 cents per share, suggesting a decline of 40.6% from the year-ago quarter’s reported figure.
The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once. It has a trailing four-quarter earnings surprise of 74.75%, on average.
Block’s comprehensive commerce ecosystem, which helps it in attracting sellers and retaining the existing ones, is likely to have strengthened the seller base in the fourth quarter.
Solid momentum across the seller ecosystem is likely to have bolstered the company’s customer base in the soon-to-be-reported quarter.
Robust seller ecosystem, along with the rapid adoption of Cash App, is expected to have driven gross profit growth of the company. Growth trend of Cash App monthly actives and inflows is likely to have continued in the fourth quarter.
Block’s strengthening omni-channel offerings, which aid it in serving diverse seller verticals, are expected to have aided growth in its seller base in the to-be-reported quarter.
All the above-mentioned factors are expected to have accelerated the company’s gross payment volume (GPV) and, consequently, the top line in the quarter under discussion.
Upswing in GPV
GPV, which is the key growth metric for Block, is likely to have benefited from strengthening relationships with sellers.
Apart from the seller base strength, Block’s robust product portfolio, strengthening mobile initiatives, and growing proliferation of digital and online transactions are expected to have driven growth in its GPV in the to-be-reported quarter.
In third-quarter 2021, GPV was $45.4 billion, up 43% from the year-ago quarter. The trend is expected to have continued in the to-be-reported quarter.
The Zacks Consensus Estimate for GPV for fourth-quarter 2021 is currently projected at $46.7 billion, suggesting growth of 45.7% from the year-ago reported figure.
What Our Model Says
Our proven model conclusively predicts an earnings beat for Block this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Block has an Earnings ESP of +7.78% and a Zacks Rank #3.
Other Stocks to Consider
Here are some other stocks worth considering, as our model shows that these too have the right combination of elements to beat estimates this earnings season.
DICK’s is scheduled to release fourth-quarter fiscal 2022 results on Mar 8. The Zacks Consensus Estimate for DKS’ earnings is pegged at $3.39 per share, suggesting an increase of 39.5% from the prior-year reported figure.
Ambarella (AMBA - Free Report) has an Earnings ESP of +2.86% and a Zacks Rank #3 at present.
Ambarella is set to report fourth-quarter fiscal 2022 results on Feb 28. The Zacks Consensus Estimate for AMBA’s earnings is pegged at 43 cents per share, which suggests an increase of 207.1% from the prior-year reported figure.
Casey’s General Stores (CASY - Free Report) has an Earnings ESP of +15.39% and a Zacks Rank #3 at present.
Casey’s is scheduled to release third-quarter fiscal 2022 results on Mar 8. The Zacks Consensus Estimate for CASY’s earnings is pegged at $1.43 per share, which suggests an increase of 37.5% from the prior-year reported figure.
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Factors Setting the Tone for Block's (SQ) Earnings in Q4
Block, Inc. (SQ - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 24.
For the fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $3.98 billion, suggesting growth of 26.05% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the fourth-quarter bottom line is pegged at earnings of 19 cents per share, suggesting a decline of 40.6% from the year-ago quarter’s reported figure.
The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once. It has a trailing four-quarter earnings surprise of 74.75%, on average.
Block Inc. Price and EPS Surprise
Block Inc. price-eps-surprise | Block Inc. Quote
Factors to Consider
Block’s comprehensive commerce ecosystem, which helps it in attracting sellers and retaining the existing ones, is likely to have strengthened the seller base in the fourth quarter.
Solid momentum across the seller ecosystem is likely to have bolstered the company’s customer base in the soon-to-be-reported quarter.
Robust seller ecosystem, along with the rapid adoption of Cash App, is expected to have driven gross profit growth of the company. Growth trend of Cash App monthly actives and inflows is likely to have continued in the fourth quarter.
Block’s strengthening omni-channel offerings, which aid it in serving diverse seller verticals, are expected to have aided growth in its seller base in the to-be-reported quarter.
All the above-mentioned factors are expected to have accelerated the company’s gross payment volume (GPV) and, consequently, the top line in the quarter under discussion.
Upswing in GPV
GPV, which is the key growth metric for Block, is likely to have benefited from strengthening relationships with sellers.
Apart from the seller base strength, Block’s robust product portfolio, strengthening mobile initiatives, and growing proliferation of digital and online transactions are expected to have driven growth in its GPV in the to-be-reported quarter.
In third-quarter 2021, GPV was $45.4 billion, up 43% from the year-ago quarter. The trend is expected to have continued in the to-be-reported quarter.
The Zacks Consensus Estimate for GPV for fourth-quarter 2021 is currently projected at $46.7 billion, suggesting growth of 45.7% from the year-ago reported figure.
What Our Model Says
Our proven model conclusively predicts an earnings beat for Block this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Block has an Earnings ESP of +7.78% and a Zacks Rank #3.
Other Stocks to Consider
Here are some other stocks worth considering, as our model shows that these too have the right combination of elements to beat estimates this earnings season.
DICK’S Sporting Goods (DKS - Free Report) has an Earnings ESP of +4.86% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DICK’s is scheduled to release fourth-quarter fiscal 2022 results on Mar 8. The Zacks Consensus Estimate for DKS’ earnings is pegged at $3.39 per share, suggesting an increase of 39.5% from the prior-year reported figure.
Ambarella (AMBA - Free Report) has an Earnings ESP of +2.86% and a Zacks Rank #3 at present.
Ambarella is set to report fourth-quarter fiscal 2022 results on Feb 28. The Zacks Consensus Estimate for AMBA’s earnings is pegged at 43 cents per share, which suggests an increase of 207.1% from the prior-year reported figure.
Casey’s General Stores (CASY - Free Report) has an Earnings ESP of +15.39% and a Zacks Rank #3 at present.
Casey’s is scheduled to release third-quarter fiscal 2022 results on Mar 8. The Zacks Consensus Estimate for CASY’s earnings is pegged at $1.43 per share, which suggests an increase of 37.5% from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.