Earnings Results: Block stock rockets higher after earnings as Square parent posts a ‘strong beat all around’

by | Nov 3, 2022 | Stock Market

Shares of Block Inc. rose nearly 13% in after-hours trading Thursday after the payment-technology company exceeded expectations with its latest earnings and gross-profit figures amid momentum in both its seller and Cash App businesses. Square’s parent company, now known as Block
SQ,
-1.34%
after a corporate name change that took hold last year, generated a third-quarter net loss of $15 million, or 2 cents a share, whereas the fintech company broke even during the year-before quarter.

After adjusting for stock-based compensation and other expenses, Block earned 42 cents a share, while analysts were modeling 23 cents a share. The company also posted adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of $327 million, up from $233 million a year before. Block’s revenue rose to $4.52 billion from $3.85 billion, while the FactSet consensus was for $4.49 billion. However, Wall Street is less focused on Block’s headline revenue figure, which includes large contributions from bitcoin revenue — $1.76 billion in the latest quarter — that carries a minimal margin. For that reason, analysts emphasize Block’s gross profit for a gauge of top-line performance, and the company posted $1.57 billion on that metric, up from $1.13 billion a year before and ahead of the FactSet consensus, which was for $1.53 billion. Jef …

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