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Block (SQ) to Report Q4 Earnings: What's in the Offing?
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Block, Inc. (SQ - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 22.
For the fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $5.69 billion, suggesting a rise of 22.3% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 60 cents per share, suggesting a jump of 172.7% 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 11.01%, 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 fourth quarter.
Integrations among the company’s product lines, which deliver enhanced user experience, are expected to have contributed to seller base growth in the quarter under review.
Block’s omnichannel offerings, which help sellers create differentiated customer experiences 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.
Growing Cash App engagement strength across the Square ecosystem is expected to have contributed well to top-line growth.
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.
SQ’s strengthening presence in the “buy now, pay later” market, on the back of robust Afterpay solutions, is expected to have contributed well.
However, the impacts of increasing advertising, product development and personnel costs are anticipated to have weighed on the company’s profitability in the fourth quarter.
Softness in consumer spending trends in food and drink, and retail discretionary verticals is anticipated to have been another headwind.
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 are reported with our Earnings ESP Filter.
Block has an Earnings ESP of -1.67% and a Zacks Rank #3.
Stocks to Consider
Here are some stocks that you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.
The Gap is set to announce fourth-quarter 2023 results on Mar 7. The Zacks Consensus Estimate for GPS’s earnings is pinned at 19 cents per share, indicating growth from the year-ago quarter’s loss of 75 cents.
Eldorado Gold (EGO - Free Report) currently has an Earnings ESP of +5.88% and a Zacks Rank #2.
Eldorado Gold is set to announce fourth-quarter 2023 results on Feb 22. The Zacks Consensus Estimate for EGO’s earnings is pinned at 21 cents per share, indicating growth of 50% from the year-ago quarter’s reported figure.
Booking Holdings (BKNG - Free Report) has an Earnings ESP of +2.07% and a Zacks Rank #3 at present.
Booking Holdings is scheduled to release fourth-quarter 2023 results on Feb 22. The Zacks Consensus Estimate for BKNG’s earnings is pegged at $29.69 per share, suggesting a jump of 20% from the prior-year quarter’s reported number.
Image: Shutterstock
Block (SQ) to Report Q4 Earnings: What's in the Offing?
Block, Inc. (SQ - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 22.
For the fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $5.69 billion, suggesting a rise of 22.3% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 60 cents per share, suggesting a jump of 172.7% 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 11.01%, 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 fourth quarter.
Integrations among the company’s product lines, which deliver enhanced user experience, are expected to have contributed to seller base growth in the quarter under review.
Block’s omnichannel offerings, which help sellers create differentiated customer experiences 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.
Growing Cash App engagement strength across the Square ecosystem is expected to have contributed well to top-line growth.
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.
SQ’s strengthening presence in the “buy now, pay later” market, on the back of robust Afterpay solutions, is expected to have contributed well.
However, the impacts of increasing advertising, product development and personnel costs are anticipated to have weighed on the company’s profitability in the fourth quarter.
Softness in consumer spending trends in food and drink, and retail discretionary verticals is anticipated to have been another headwind.
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 are reported with our Earnings ESP Filter.
Block has an Earnings ESP of -1.67% and a Zacks Rank #3.
Stocks to Consider
Here are some stocks that you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.
The Gap (GPS - Free Report) has an Earnings ESP of +24.44% and sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Gap is set to announce fourth-quarter 2023 results on Mar 7. The Zacks Consensus Estimate for GPS’s earnings is pinned at 19 cents per share, indicating growth from the year-ago quarter’s loss of 75 cents.
Eldorado Gold (EGO - Free Report) currently has an Earnings ESP of +5.88% and a Zacks Rank #2.
Eldorado Gold is set to announce fourth-quarter 2023 results on Feb 22. The Zacks Consensus Estimate for EGO’s earnings is pinned at 21 cents per share, indicating growth of 50% from the year-ago quarter’s reported figure.
Booking Holdings (BKNG - Free Report) has an Earnings ESP of +2.07% and a Zacks Rank #3 at present.
Booking Holdings is scheduled to release fourth-quarter 2023 results on Feb 22. The Zacks Consensus Estimate for BKNG’s earnings is pegged at $29.69 per share, suggesting a jump of 20% from the prior-year quarter’s reported number.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.