Square-parent Block (SQ) reported June quarter earnings and earnings that were down from a year earlier, but exceeded estimates. SQ stocks fell as two other financial metrics, operating profit and gross pay volume, missed views.
San Francisco-based Block reported second-quarter results after market close on Thursday. Results included the recently acquired Australian-based consumer lending startup Afterpay.
Square earnings were 18 cents per share on an adjusted basis, down 72% from the same period last year. Analysts had expected earnings of 16 cents per share.
Also, Square said revenue fell 6% to $4.4 billion as Cash App transactions for digital cryptocurrency Bitcoin declined. Analysts had forecast revenue of $4.33 billion.
Square shares fell 5.8% to 84.45 during extended stock market trading today. SQ shares were up in seven consecutive trading sessions en route to the Square earnings report.
SQ Inventory: Payment Volume Missing Estimates
Financial analysts also view operating profit as an important measure of SQ stocks. Operating profit came in at $1.47 billion, up 29%, compared to estimates of $1.495 billion.
Gross payment volume from merchant customers increased 23% to $52.5 billion, compared to estimates of $53.187 billion.
Additionally, Cash App’s gross profit increased 29% to $705 million. Excluding Afterpay, Cash App’s gross profit increased by 15%.
The company said its earnings before interest, taxes, depreciation and amortization (EBITDA) were $187 million. Analysts had estimated at $151.2 million.
SQ stocks were down 51% in 2022 heading for the earnings report. Square stock has a relative strength of 12, according to IBD Stock Check-up.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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