Square-parent Block (SQ) on Thursday reported March-quarter earnings, revenue, operating profit and gross payment volume that missed analyst estimates amid lowered expectations. But SQ stock edged up as analysts mulled the company’s outlook amid the Afterpay acquisition.
San Francisco-based Block reported fourth-quarter earnings after the market close. Square stock climbed 1.1% to 96.55 in extended trading on the stock market today.
In Thursday’s regular session, Square stock fell 10.5% amid a broad sell-off in the Nasdaq.
Square earnings for the first quarter were 18 cents per share on an adjusted basis, down 56% from the year-earlier period. Analysts had projected earnings of 20 cents a share.
SQ Stock: Revenue Below Expectations
Square said revenue dropped 21% to $3.96 billion, as Cash App transactions for digital cryptocurrency Bitcoin fell. Analysts had predicted revenue of $4.14 billion.
Financial analysts also view operating income as a key metric for SQ stock. Operating income came in at $1.29 billion, up 34%, versus estimates of $1.30 billion.
Gross payment volume from merchant customers rose 31% to $43.5 billion, versus estimates of $45.39 billion.
Results included recently acquired Australia-based consumer lending startup Afterpay.
Afterpay Contributions To Profits
In a letter to shareholders, management said: “Afterpay contributed $92 million of gross profit in the months of February and March, with $46 million of gross profit recognized in each of Cash App and Square.”
Excluding Afterpay, the company said “gross profit was $1.20 billion, up 25% year over year.”
SQ stock has retreated 50% in 2022 heading into the earnings report.
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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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