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Block (SQ) to Release Q3 Earnings: What's in the Cards?
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Block, Inc. (SQ - Free Report) is scheduled to report third-quarter 2023 results on Nov 2.
The Zacks Consensus Estimate for revenues is pegged at $5.41 billion, suggesting growth of 19.7% from the prior-year levels.
The consensus estimate for earnings is pegged at 44 cents per share, implying a 4.8% rise from a year ago.
The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing once, delivering an earnings surprise of 25.41%, on average.
Let’s see how things might have shaped up for this announcement.
Block’s expanding customer base is expected to have benefited its top-line growth in the quarter under review.
The company’s strong momentum across Square banking products, driven by Instant Transfer, Square Debit Card, Square Savings and Square Loans, are expected to have aided Block’s performance in the quarter to be reported.
The growing addressable market for the larger sellers’ segment is likely to have been another positive.
Increasing momentum across its transaction, subscription and services, and bitcoin end markets is expected to boost SQ’s quarterly results.
The Zacks Consensus Estimate for third-quarter 2023 transaction-based revenues is pegged at $1.67 billion, indicating growth of 10.4% on a year-over-year basis.
The consensus estimate suggests subscription and services revenues to climb 22.1% year over year to $1.45 billion.
The consensus mark for bitcoin revenues is pegged at $2.18 billion, referring to 23.6% year-over-year growth.
Moreover, the company’s Cash App Pay, connecting the Buy Now, Pay Later platform to reach a wider range of merchants, is likely to have bolstered Block’s performance in the underlying quarter.
SQ’s gross payment volume is expected to have benefited from its strong Cash App engagement and Square ecosystem.
The Zacks Consensus Estimate for GMV is pegged at $61.23 billion, hinting at a 12.6% jump from the year-ago figure.
However, intensifying competition and macroeconomic headwinds are expected to have hurt Block’s profitability in the quarter under review.
Further, increasing impact of acquisition-related amortization expenses, restructuring costs and product development expenditures is likely to have been major concerns.
Moreover, weakness in international markets might have been a negative.
What Our Model Says
Our proven model predicts an earnings beat for Block this quarter. Per the Zacks model, 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. That’s exactly the case here.
Block currently has an Earnings ESP of +0.76% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases.
GoDaddy is scheduled to release third-quarter 2023 results on Nov 2. The Zacks Consensus Estimate for GDDY’s earnings is pegged at 71 cents per share, suggesting 12.7% growth from the prior-year actuals.
Fastly (FSLY - Free Report) has an Earnings ESP of +17.24% and a Zacks Rank #2 at present.
Fastly is set to report third-quarter 2023 results on Nov 1. The Zacks Consensus Estimate is pegged at a loss of 7 cents per share, implying a 50% climb from the year-earlier figure.
Itron (ITRI - Free Report) has an Earnings ESP of +23.18% and flaunts a Zacks Rank #1.
ITRI is slated to report its third-quarter 2023 numbers on Nov 2. The Zacks Consensus Estimate for earnings is pegged at 51 cents per share, implying a 121.74% surge from the year-earlier figure.
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Block (SQ) to Release Q3 Earnings: What's in the Cards?
Block, Inc. (SQ - Free Report) is scheduled to report third-quarter 2023 results on Nov 2.
The Zacks Consensus Estimate for revenues is pegged at $5.41 billion, suggesting growth of 19.7% from the prior-year levels.
The consensus estimate for earnings is pegged at 44 cents per share, implying a 4.8% rise from a year ago.
The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing once, delivering an earnings surprise of 25.41%, on average.
Let’s see how things might have shaped up for this announcement.
Block, Inc. Price and EPS Surprise
Block, Inc. price-eps-surprise | Block, Inc. Quote
Factors at Play
Block’s expanding customer base is expected to have benefited its top-line growth in the quarter under review.
The company’s strong momentum across Square banking products, driven by Instant Transfer, Square Debit Card, Square Savings and Square Loans, are expected to have aided Block’s performance in the quarter to be reported.
The growing addressable market for the larger sellers’ segment is likely to have been another positive.
Increasing momentum across its transaction, subscription and services, and bitcoin end markets is expected to boost SQ’s quarterly results.
The Zacks Consensus Estimate for third-quarter 2023 transaction-based revenues is pegged at $1.67 billion, indicating growth of 10.4% on a year-over-year basis.
The consensus estimate suggests subscription and services revenues to climb 22.1% year over year to $1.45 billion.
The consensus mark for bitcoin revenues is pegged at $2.18 billion, referring to 23.6% year-over-year growth.
Moreover, the company’s Cash App Pay, connecting the Buy Now, Pay Later platform to reach a wider range of merchants, is likely to have bolstered Block’s performance in the underlying quarter.
SQ’s gross payment volume is expected to have benefited from its strong Cash App engagement and Square ecosystem.
The Zacks Consensus Estimate for GMV is pegged at $61.23 billion, hinting at a 12.6% jump from the year-ago figure.
However, intensifying competition and macroeconomic headwinds are expected to have hurt Block’s profitability in the quarter under review.
Further, increasing impact of acquisition-related amortization expenses, restructuring costs and product development expenditures is likely to have been major concerns.
Moreover, weakness in international markets might have been a negative.
What Our Model Says
Our proven model predicts an earnings beat for Block this quarter. Per the Zacks model, 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. That’s exactly the case here.
Block currently has an Earnings ESP of +0.76% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases.
GoDaddy (GDDY - Free Report) has an Earnings ESP of +8.11% and currently sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.
GoDaddy is scheduled to release third-quarter 2023 results on Nov 2. The Zacks Consensus Estimate for GDDY’s earnings is pegged at 71 cents per share, suggesting 12.7% growth from the prior-year actuals.
Fastly (FSLY - Free Report) has an Earnings ESP of +17.24% and a Zacks Rank #2 at present.
Fastly is set to report third-quarter 2023 results on Nov 1. The Zacks Consensus Estimate is pegged at a loss of 7 cents per share, implying a 50% climb from the year-earlier figure.
Itron (ITRI - Free Report) has an Earnings ESP of +23.18% and flaunts a Zacks Rank #1.
ITRI is slated to report its third-quarter 2023 numbers on Nov 2. The Zacks Consensus Estimate for earnings is pegged at 51 cents per share, implying a 121.74% surge from the year-earlier figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.