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Block (SQ) to Report Q1 Earnings: What's in the Offing?
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Block (SQ - Free Report) is scheduled to report first-quarter 2022 results on May 5.
For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $4.23 billion, suggesting a decline of 16.4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 12 cents per share, suggesting a fall of 70.7% from the year-ago reported figure.
The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, delivering an earnings surprise of 75.5%, on average.
The company’s comprehensive commerce ecosystem, which helps it attract sellers and retain the existing ones, is likely to have strengthened the seller base in the to-be-reported quarter.
Block’s robust product portfolio is expected to have driven top-line growth in the first quarter.
Integrations among the company’s product lines, which deliver enhanced user experience, are expected to have contributed to seller base growth in the to-be-reported quarter.
Block’s omnichannel offerings, which help sellers create differentiated customer experience on the back of customer insights by managing orders from the point of sale and eliminating manual aggregation of online and in-person orders, are anticipated to have added strength to the seller base.
In the quarter under review, all the above-mentioned factors are likely to have accelerated the company’s gross payment volume, which is a key growth metric for the company.
Apart from these, its expanding global footprint on the back of its Early Access Programme is expected to have contributed well.
Impacts of these are expected to get reflected in first-quarter revenues.
However, higher investments and increasing product development expenses are anticipated to have weighed on Block’s profitability in the quarter under review.
Uncertainties related to the COVID-19 pandemic are also expected to have been concerning. Foreign exchange headwinds are likely to have remained headwinds.
What Our Model Says
Our proven model does not conclusively predict 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. 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 -19.47% and a Zacks Rank #3.
Stocks to Consider
Here are some stocks that you may also consider, as our model shows that these have the right combination of elements to beat on earnings this season.
Alcon (ALC - Free Report) is slated to report first-quarter 2022 results on May 10. The company carries a Zacks Rank #2 and has an Earnings ESP of +10.04% at present. Alcon’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 16.5%.
The Zacks Consensus Estimate for quarterly earnings is pegged at 52 cents per share, suggesting a year-over-year improvement of 6.1%. ALC’s quarterly revenues are estimated to increase 6.8% year over year to $2.04 billion.
Stantec (STN - Free Report) currently carries a Zacks Rank #2 and has an Earnings ESP of +8.05%. The company is scheduled to report first-quarter 2022 results on May 11. Stantec’s earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters, while meeting the same once and missing on one occasion, the average surprise being 0.1%.
The Zacks Consensus Estimate for STN’s first-quarter earnings is pegged at 47 cents per share, indicating a year-over-year increase of 23.7%. The consensus mark for revenues is pegged at $814.1 million, suggesting a year-over-year increase of 20.7%.
Simon Property (SPG - Free Report) currently carries a Zacks Rank #3 and has an Earnings ESP of +0.50%. The company is slated to report its first-quarter 2022 results on May 9. Simon Property’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 16.9%.
The Zacks Consensus Estimate for Simon Property’s first-quarter earnings is pegged at $2.74 per share, implying a year-over-year increase of 10.5%. SPG is estimated to report revenues of $1.33 billion, which suggests growth of 7.3% from the year-ago quarter’s reported figure.
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Block (SQ) to Report Q1 Earnings: What's in the Offing?
Block (SQ - Free Report) is scheduled to report first-quarter 2022 results on May 5.
For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $4.23 billion, suggesting a decline of 16.4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 12 cents per share, suggesting a fall of 70.7% from the year-ago reported figure.
The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, delivering an earnings surprise of 75.5%, on average.
Block, Inc. Price and EPS Surprise
Block, Inc. price-eps-surprise | Block, Inc. Quote
Key Factors to Note
The company’s comprehensive commerce ecosystem, which helps it attract sellers and retain the existing ones, is likely to have strengthened the seller base in the to-be-reported quarter.
Block’s robust product portfolio is expected to have driven top-line growth in the first quarter.
Integrations among the company’s product lines, which deliver enhanced user experience, are expected to have contributed to seller base growth in the to-be-reported quarter.
Block’s omnichannel offerings, which help sellers create differentiated customer experience on the back of customer insights by managing orders from the point of sale and eliminating manual aggregation of online and in-person orders, are anticipated to have added strength to the seller base.
In the quarter under review, all the above-mentioned factors are likely to have accelerated the company’s gross payment volume, which is a key growth metric for the company.
Apart from these, its expanding global footprint on the back of its Early Access Programme is expected to have contributed well.
Impacts of these are expected to get reflected in first-quarter revenues.
However, higher investments and increasing product development expenses are anticipated to have weighed on Block’s profitability in the quarter under review.
Uncertainties related to the COVID-19 pandemic are also expected to have been concerning. Foreign exchange headwinds are likely to have remained headwinds.
What Our Model Says
Our proven model does not conclusively predict 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. 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 -19.47% and a Zacks Rank #3.
Stocks to Consider
Here are some stocks that you may also consider, as our model shows that these have the right combination of elements to beat on earnings this season.
Alcon (ALC - Free Report) is slated to report first-quarter 2022 results on May 10. The company carries a Zacks Rank #2 and has an Earnings ESP of +10.04% at present. Alcon’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 16.5%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly earnings is pegged at 52 cents per share, suggesting a year-over-year improvement of 6.1%. ALC’s quarterly revenues are estimated to increase 6.8% year over year to $2.04 billion.
Stantec (STN - Free Report) currently carries a Zacks Rank #2 and has an Earnings ESP of +8.05%. The company is scheduled to report first-quarter 2022 results on May 11. Stantec’s earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters, while meeting the same once and missing on one occasion, the average surprise being 0.1%.
The Zacks Consensus Estimate for STN’s first-quarter earnings is pegged at 47 cents per share, indicating a year-over-year increase of 23.7%. The consensus mark for revenues is pegged at $814.1 million, suggesting a year-over-year increase of 20.7%.
Simon Property (SPG - Free Report) currently carries a Zacks Rank #3 and has an Earnings ESP of +0.50%. The company is slated to report its first-quarter 2022 results on May 9. Simon Property’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 16.9%.
The Zacks Consensus Estimate for Simon Property’s first-quarter earnings is pegged at $2.74 per share, implying a year-over-year increase of 10.5%. SPG is estimated to report revenues of $1.33 billion, which suggests growth of 7.3% from the year-ago quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.