Block reports revenue miss but a slight beat on earnings

Earnings

Dado Ruvic | Reuters

Block shares tumbled 11% in extended trading on Thursday after the company reported third-quarter revenue that trailed Wall Street expectations.

Here is how the company did, compared to analysts’ consensus estimates from LSEG.

  • Earnings per share: 88 cents adjusted vs. 87 cents expected
  • Revenue: $5.98 billion vs. $6.24 billion expected

Block, formerly known as Square, posted $2.25 billion in gross profit, up 19% from a year ago. Analysts tend to focus on gross profit as a more accurate measurement of the company’s core transactional businesses.

The company reported net income of $283.7 million, or 45 cents per share, after losing $88.7 million, or 15 cents a share, a year earlier.

The Cash App business, the company’s popular mobile payment platform and a significant contributor to overall profitability, reported $1.31 billion in gross profit, a 21% year-over-year jump. Block, run by Twitter co-founder Jack Dorsey, said its Cash App Card monthly active users increased 11% year over year to more than 24 million.

The company said gross profit for the fourth quarter will increase 14% to $2.31 billion.

Block’s third-quarter earnings call starts at 5 P.M. Eastern time.

Articles You May Like

You could face the ‘survivor’s penalty’ after a spouse dies — here’s how to avoid it
Steve Madden to slash China sourcing by as much as 45% as Trump’s tariff plan looms
Adyen shares slide as payments giant’s transaction volume growth slows
Trump promised no taxes on Social Security benefits. It’s too soon to plan on that change, experts say
28% of credit card users are still paying off last year’s holiday debt. But that’s an improvement

Leave a Reply

Your email address will not be published. Required fields are marked *