We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Block (SQ) to Release Q4 Earnings: What's in the Cards?
Read MoreHide Full Article
Block, Inc. (SQ - Free Report) is scheduled to report fourth-quarter 2022 results on Feb 23.
For the fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $4.53 billion, suggesting a growth of 11.1% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 30 cents per share, suggesting a growth of 11.1% from the year-ago reported figure.
The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 43.7% on average.
Block’s portfolio strength is anticipated to get reflected in fourth-quarter results.
The company’s strengthening presence in the “buy now, pay later” (BNPL) market on the back of its expanding offerings is expected to have contributed well.
During the fourth quarter, Block’s Afterpay introduced a monthly payment solution to deliver an enhanced BNPL experience to merchants and their customers.
Further, Afterpay teamed up with various fashion and footwear retailers in Canada such as Blondo, Dolce Vita, Fragrance Canada, HAVEN, Pilgrim, Vessi and VSP in the fourth quarter in a bid to gain momentum in the holiday shopping season.
Moreover, Afterpay witnessed a strong momentum during the holiday shopping season, especially on Black Friday and Cyber Monday. During this period, BNPL transactions through Afterpay grew by 120% as compared with the pre-holiday figure.
Apart from these, the company’s strong omni-channel 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. Also, Block’s growing card-present volume is expected to have been a positive.
The increasing adoption of Cash App is likely to have aided growth in Block’s gross payment volume in the quarter under review.
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 the profitability of the company.
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 -39.06% and a Zacks Rank #3.
Stocks to Consider
Here are some stocks that you may consider, as our model shows that they have the right combination of elements to beat on earnings this season.
CrowdStrike is scheduled to release its fourth-quarter fiscal 2023 results on March 7. The Zacks Consensus Estimate for CRWD’s earnings is pegged at 43 cents per share, suggesting an increase of 43.3% from the prior-year quarter’s reported figure.
Axonics (AXNX - Free Report) has an Earnings ESP of +31.03% and a Zacks Rank #3 at present.
Axonics is set to report its fourth-quarter 2022 results on Mar 1. The Zacks Consensus Estimate for AXNX’s loss is pegged at 23 cents per share, narrower than the loss of 34 cents reported in the year-ago quarter.
Broadcom (AVGO - Free Report) has an Earnings ESP of +0.67% and a Zacks Rank #3 at present.
Broadcom is scheduled to release its first-quarter fiscal 2023 results on Mar 2. The Zacks Consensus Estimate for AVGO’s earnings is pegged at $10.16 per share, suggesting an increase of 21.1% from the prior-year period’s reported figure.
Image: Shutterstock
Block (SQ) to Release Q4 Earnings: What's in the Cards?
Block, Inc. (SQ - Free Report) is scheduled to report fourth-quarter 2022 results on Feb 23.
For the fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $4.53 billion, suggesting a growth of 11.1% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 30 cents per share, suggesting a growth of 11.1% from the year-ago reported figure.
The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 43.7% 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 fourth-quarter results.
The company’s strengthening presence in the “buy now, pay later” (BNPL) market on the back of its expanding offerings is expected to have contributed well.
During the fourth quarter, Block’s Afterpay introduced a monthly payment solution to deliver an enhanced BNPL experience to merchants and their customers.
Further, Afterpay teamed up with various fashion and footwear retailers in Canada such as Blondo, Dolce Vita, Fragrance Canada, HAVEN, Pilgrim, Vessi and VSP in the fourth quarter in a bid to gain momentum in the holiday shopping season.
Moreover, Afterpay witnessed a strong momentum during the holiday shopping season, especially on Black Friday and Cyber Monday. During this period, BNPL transactions through Afterpay grew by 120% as compared with the pre-holiday figure.
Apart from these, the company’s strong omni-channel 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. Also, Block’s growing card-present volume is expected to have been a positive.
The increasing adoption of Cash App is likely to have aided growth in Block’s gross payment volume in the quarter under review.
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 the profitability of the company.
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 -39.06% and a Zacks Rank #3.
Stocks to Consider
Here are some stocks that you may consider, as our model shows that they have the right combination of elements to beat on earnings this season.
CrowdStrike (CRWD - Free Report) has an Earnings ESP of +2.33% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CrowdStrike is scheduled to release its fourth-quarter fiscal 2023 results on March 7. The Zacks Consensus Estimate for CRWD’s earnings is pegged at 43 cents per share, suggesting an increase of 43.3% from the prior-year quarter’s reported figure.
Axonics (AXNX - Free Report) has an Earnings ESP of +31.03% and a Zacks Rank #3 at present.
Axonics is set to report its fourth-quarter 2022 results on Mar 1. The Zacks Consensus Estimate for AXNX’s loss is pegged at 23 cents per share, narrower than the loss of 34 cents reported in the year-ago quarter.
Broadcom (AVGO - Free Report) has an Earnings ESP of +0.67% and a Zacks Rank #3 at present.
Broadcom is scheduled to release its first-quarter fiscal 2023 results on Mar 2. The Zacks Consensus Estimate for AVGO’s earnings is pegged at $10.16 per share, suggesting an increase of 21.1% from the prior-year period’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.