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Block (SQ) to Report Q3 Earnings: What's in the Offing?
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Block, Inc. (SQ - Free Report) is scheduled to report third-quarter 2022 results on Nov 3.
For the third quarter, the Zacks Consensus Estimate for revenues is pegged at $4.48 billion, suggesting growth of 16.4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 23 cents per share, suggesting a fall of 37.8% from the year-ago quarter’s reported figure. The figure has moved 4.2% south over the past seven days.
Block’s bottom line surpassed the Zacks Consensus Estimate in two of the trailing four quarters and matched the same once and missed the mark on another occasion, delivering an earnings surprise of 22.4%, on average.
Block’s portfolio strength is anticipated to get reflected in third-quarter results.
SQ’s strong omnichannel offerings, which aid sellers in managing orders from POS, and eliminating manual aggregation of online and in-person orders, are expected to have contributed well.
Strength in online channels, including Square Online, Invoices, Virtual Terminal and eCommerce API, is likely to have aided growth in card-not-present payment volumes.
The increasing adoption of Cash App is likely to have aided growth in Block’s gross payment volume in the quarter under review.
In the to-be-reported quarter, Block launched Square’s first integration with Afterpay in Canada through which Afterpay BNPL service was made available to sellers using the Square e-commerce products like the Square Online store and Square Online Checkout in the country.
Also, Square unveiled its integration with Clearpay in the U.K., which is expected to have bolstered its customer reach in the country during the third quarter.
In addition, Afterpay teamed up with Sephora, an omni retailer of beauty products, to offer the BNPL service to the latter’s customers.
Block deepened its focus on small businesses on the back of the Square-Sage partnership, built to integrate Square’s point-of-sale (POS) software and Sage Accounting to aid efficiency in small businesses’ operations and help them grow quickly.
Block rolled out the entire Square ecosystem in Spanish in the United States. This is expected to have aided SQ in gaining traction among the Hispanic-owned businesses in the United States.
All these endeavors are likely to have benefited Block’s third-quarter performance.
However, uncertainties related to the pandemic are anticipated to have been concerning. A slowdown in bitcoin trading activities is likely to have acted as a major headwind. Also, increasing advertising and personnel costs are anticipated to have weighed on Block’s profitability.
What Our Model Says
Our proven model 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, which is precisely 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 +3.02% 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 on earnings this season.
US Foods is set to report third-quarter 2022 results on Nov 10. The Zacks Consensus Estimate for USFD’s earnings is pegged at 59 cents per share, suggesting an increase of 22.9% from the prior-year period’s reported figure.
The Trade Desk (TTD - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank of 2 at present.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 14. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.
Tencent Music Entertainment Group (TME - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank of 2 at present.
Tencent Music is scheduled to release third-quarter 2022 results on Nov 15. The Zacks Consensus Estimate for TME’s earnings is pegged at 11 cents per share, suggesting an increase of 22.2% from the prior-year quarter’s reported figure.
Image: Bigstock
Block (SQ) to Report Q3 Earnings: What's in the Offing?
Block, Inc. (SQ - Free Report) is scheduled to report third-quarter 2022 results on Nov 3.
For the third quarter, the Zacks Consensus Estimate for revenues is pegged at $4.48 billion, suggesting growth of 16.4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 23 cents per share, suggesting a fall of 37.8% from the year-ago quarter’s reported figure. The figure has moved 4.2% south over the past seven days.
Block’s bottom line surpassed the Zacks Consensus Estimate in two of the trailing four quarters and matched the same once and missed the mark on another occasion, delivering an earnings surprise of 22.4%, on average.
Block, Inc. Price and EPS Surprise
Block, Inc. price-eps-surprise | Block, Inc. Quote
Factors at Play
Block’s portfolio strength is anticipated to get reflected in third-quarter results.
SQ’s strong omnichannel offerings, which aid sellers in managing orders from POS, and eliminating manual aggregation of online and in-person orders, are expected to have contributed well.
Strength in online channels, including Square Online, Invoices, Virtual Terminal and eCommerce API, is likely to have aided growth in card-not-present payment volumes.
The increasing adoption of Cash App is likely to have aided growth in Block’s gross payment volume in the quarter under review.
In the to-be-reported quarter, Block launched Square’s first integration with Afterpay in Canada through which Afterpay BNPL service was made available to sellers using the Square e-commerce products like the Square Online store and Square Online Checkout in the country.
Also, Square unveiled its integration with Clearpay in the U.K., which is expected to have bolstered its customer reach in the country during the third quarter.
In addition, Afterpay teamed up with Sephora, an omni retailer of beauty products, to offer the BNPL service to the latter’s customers.
Block deepened its focus on small businesses on the back of the Square-Sage partnership, built to integrate Square’s point-of-sale (POS) software and Sage Accounting to aid efficiency in small businesses’ operations and help them grow quickly.
Block rolled out the entire Square ecosystem in Spanish in the United States. This is expected to have aided SQ in gaining traction among the Hispanic-owned businesses in the United States.
All these endeavors are likely to have benefited Block’s third-quarter performance.
However, uncertainties related to the pandemic are anticipated to have been concerning. A slowdown in bitcoin trading activities is likely to have acted as a major headwind. Also, increasing advertising and personnel costs are anticipated to have weighed on Block’s profitability.
What Our Model Says
Our proven model 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, which is precisely 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 +3.02% 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 on earnings this season.
US Foods (USFD - Free Report) has an Earnings ESP of +4.58% and a Zacks Rank # 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
US Foods is set to report third-quarter 2022 results on Nov 10. The Zacks Consensus Estimate for USFD’s earnings is pegged at 59 cents per share, suggesting an increase of 22.9% from the prior-year period’s reported figure.
The Trade Desk (TTD - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank of 2 at present.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 14. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.
Tencent Music Entertainment Group (TME - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank of 2 at present.
Tencent Music is scheduled to release third-quarter 2022 results on Nov 15. The Zacks Consensus Estimate for TME’s earnings is pegged at 11 cents per share, suggesting an increase of 22.2% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.