Fintech innovator Block (XYZ Quick QuoteXYZ - Free Report) is set to report third-quarter earnings results on Thursday after the closing bell. A Zacks Rank #3 (Hold), Block has missed the earnings mark in two of the past four quarters. Is the stock’s relative underperformance set to continue?

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Analysts are expecting the payments processor to post a profit of 63 cents per share, reflecting negative growth of -28.4% versus the same quarter last year. Sales are projected to have increased 6.1% to $6.3 billion during the quarter.

Economic uncertainty and heightened tariffs have the potential to harm merchant clients, leading to lower transaction volumes for Block and slowing revenue growth. The company remains vulnerable to intense competition from big names like PayPal.

Block shares are down roughly 13% year-to-date and are underperforming the major indexes. Investors would be wise to exercise caution ahead of the upcoming announcement.