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Block (SQ) to Report Q1 Earnings: What's in the Offing?
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Block, Inc. (SQ - Free Report) is set to report first-quarter 2023 results on May 4.
For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $4.58 billion, suggesting growth of 15.5% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 31 cents per share, suggesting a fall of 72.2% from the year-ago quarter’s reported figure. The figure has moved 3.1% south over the past 30 days.
Block’s bottom line surpassed the Zacks Consensus Estimate in two of the trailing four quarters, matching it once and missing the mark on another occasion, delivering an earnings surprise of 27.8%, on average.
Block’s portfolio strength is anticipated to get reflected in first-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 the Cash App is likely to have aided growth in Block’s gross payment volume in the quarter under review.
The company’s strengthening presence in the “buy now, pay later” (BNPL) market on the back of its Afterpay buyout is expected to have aided the quarter to be reported.
Block’s deepening 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, is anticipated to have been a tailwind.
Strength across the Square ecosystem is likely to have contributed well to the Gross Payment Volume (GPV) growth in the quarter under review.
All these factors are likely to have benefited Block’s first-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 expected 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 +7.75% 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.
DOCN is scheduled to release first-quarter 2023 results on May 9. The Zacks Consensus Estimate for DOCN’s earnings is pegged at 29 cents per share, suggesting a jump from the 7 cents per share reported in the prior-year quarter.
BILL Holdings, Inc. (BILL - Free Report) has an Earnings ESP of +1.89% and a Zacks Rank #3 at present.
BILL Holdings is set to report third-quarter fiscal 2023 results on May 4. The Zacks Consensus Estimate for BILL’s earnings is pegged at 24 cents per share. The company incurred a loss of 8 cents per share in the year-ago quarter.
PayPal (PYPL - Free Report) has an Earnings ESP of +2.15% and a Zacks Rank #3 at present.
PYPL is scheduled to report first-quarter 2023 results on May 8. The Zacks Consensus Estimate for PYPL’s earnings is pegged at $1.09 per share, suggesting an increase of 23.9% from the prior-year quarter’s reported figure.
Image: Bigstock
Block (SQ) to Report Q1 Earnings: What's in the Offing?
Block, Inc. (SQ - Free Report) is set to report first-quarter 2023 results on May 4.
For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $4.58 billion, suggesting growth of 15.5% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 31 cents per share, suggesting a fall of 72.2% from the year-ago quarter’s reported figure. The figure has moved 3.1% south over the past 30 days.
Block’s bottom line surpassed the Zacks Consensus Estimate in two of the trailing four quarters, matching it once and missing the mark on another occasion, delivering an earnings surprise of 27.8%, 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 first-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 the Cash App is likely to have aided growth in Block’s gross payment volume in the quarter under review.
The company’s strengthening presence in the “buy now, pay later” (BNPL) market on the back of its Afterpay buyout is expected to have aided the quarter to be reported.
Block’s deepening 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, is anticipated to have been a tailwind.
Strength across the Square ecosystem is likely to have contributed well to the Gross Payment Volume (GPV) growth in the quarter under review.
All these factors are likely to have benefited Block’s first-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 expected 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 +7.75% 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.
DigitalOcean (DOCN - Free Report) has an Earnings ESP of +2.30% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DOCN is scheduled to release first-quarter 2023 results on May 9. The Zacks Consensus Estimate for DOCN’s earnings is pegged at 29 cents per share, suggesting a jump from the 7 cents per share reported in the prior-year quarter.
BILL Holdings, Inc. (BILL - Free Report) has an Earnings ESP of +1.89% and a Zacks Rank #3 at present.
BILL Holdings is set to report third-quarter fiscal 2023 results on May 4. The Zacks Consensus Estimate for BILL’s earnings is pegged at 24 cents per share. The company incurred a loss of 8 cents per share in the year-ago quarter.
PayPal (PYPL - Free Report) has an Earnings ESP of +2.15% and a Zacks Rank #3 at present.
PYPL is scheduled to report first-quarter 2023 results on May 8. The Zacks Consensus Estimate for PYPL’s earnings is pegged at $1.09 per share, suggesting an increase of 23.9% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.