Square to report quarterly results after the bell

Square is slated to report fiscal fourth-quarter results after the bell Wednesday.

Here's what analysts are expecting for the fourth quarter:

— Loss per share: 9 cents, according to Thomson Reuters consensus
— Revenue: $450 million, according to Reuters
— Gross payment volume: $13.65 billion, according to FactSet
— Q1 revenue guidance: $449.9 million, according to Reuters

Square earnings: Expect another solid beat thanks to broadened revenue streams

May 3, 2017

Analysts are expecting another solid beat from Square Inc. when it reports first-quarter earnings after the market closes Wednesday.

After its last earnings report, most analysts saw a clear growth trajectory for Square with its Square for retail offering, a new point-of-sale app. Additionally, the analysts expect Square to successfully diversify its revenue stream through integrated solutions and its banking and loan service.

Since then, Square has expanded its card readers to the United Kingdom, bringing its total reach to five countries. Nomura analysts expect continuing momentum and another solid beat this quarter, with gross payment volume boosted by the company’s virtual terminal, a platform in which sellers can accept payments via their computers

Here's what to expect:

Earnings: Analysts surveyed by FactSet expect Square to report a loss of 8 cents per share, compared with the loss per share of 29 cents it reported in the year-earlier period.

Square beat earnings expectations the past two quarters, but missed expectations the quarter before that. It has only reported earnings as a public company for five quarters.

Revenue: The FactSet consensus is for revenue of $193 million, up from the $146.2 million Square reported in the year-earlier period.


What else to look for: Though Square has been on a high-growth trajectory, the company is still relatively young. SunTrust analysts had previously cautioned that its growth may not be sustainable and suggested that its low losses from the previous quarter may have been cyclical. Square’s earnings forecast from February did not show the company turning profitable in the next 12 months.

Dorsey has been selling vested shares of Square at a regular pace, while buying up Twitter shares, and plans to sell about $11 million in stock, as part of a plan many executives put in place to avoid insider trading accusations.

Square is expected to report a narrower loss and revenue gains of 22% when the digital payment processor reports second-quarter earnings late Wednesday.

Analysts estimate a 5-cent per share loss vs. an 8-cent loss in the year-earlier period. Revenue will climb 22% to $536.3 million, analysts estimate.

"Q2 needs a 'Wow,' which is possible," said Dan Dolev, an analyst at Instinet in a report.

San Francisco-based Square makes credit-card readers that plug into mobile phones and tablets. While Square's primary customers are small businesses, it's attracting bigger customers, analysts say. Square has expanded into providing financing and bank loans to small businesses.

Scott Devitt, an analyst at Stifel, was upbeat in a note to clients and said: "We expect another strong quarter for Square. Sentiment is elevated heading into the quarter with shares trading near an all-time high. We continue to believe Square is building a uniquely positioned (small- and medium sized businesses) services ecosystem and is effectively expanding its opportunity with new products/features and moves into new geographies."

Square shares climbed in after-hours trading Wednesday after the company reported second-quarter results that beat analyst expectations.

• Loss per share: 4 cents vs. 5 cents, according to Thomson Reuters consensus.
• Revenue: $552 million vs. $536.3 million, according to Thomson Reuters consensus.
• Gross payment volume: $16.4 billion vs. $16.02 billion, according to StreetAccount consensus.

In Square's second-quarter last year, the company reported a loss of 8 cents on revenue of $438.5 million.

Given their strong second-quarter results, Square raised its full-year guidance:

• Adjusted earnings per share: 21 cents to 23 cents, vs. previous outlook of 16 cents to 20 cents
• Adjusted revenue for 2017: $925 million to $935 million, vs. previous outlook of $890 million to $910 million

Evercore ISI Upgrades Square, Inc. (SQ) to Outperform

Nov. 17, 2017

Square, Inc. (NYSE:SQ) was upgraded by Evercore ISI to an “outperform” rating in a research report issued to clients and investors on Friday.

A number of other research firms also recently weighed in on SQ. Vetr upgraded Square from a “buy” rating to a “strong-buy” rating and set a $39.78 price target on the stock in a research note on Wednesday, October 25th. Bank of America Corporation started coverage on Square in a research note on Tuesday, September 12th. They issued a “neutral” rating on the stock. Citigroup Inc. lifted their price target on Square from $30.00 to $38.00 and gave the company a “buy” rating in a research note on Wednesday, October 18th. Cantor Fitzgerald started coverage on Square in a research note on Tuesday, September 12th. They issued an “overweight” rating and a $31.00 price target on the stock. Finally, CIBC started coverage on Square in a research note on Thursday, October 12th. They issued an “outperform” rating and a $35.00 price target on the stock. Fourteen investment analysts have rated the stock with a hold rating and twenty-three have issued a buy rating to the company. The company currently has an average rating of “Buy” and an average price target of $32.37.

Square (SQ) opened at $41.90 on Friday. Square has a 12 month low of $11.88 and a 12 month high of $41.97. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.81 and a current ratio of 1.81.

Square (NYSE:SQ) last announced its earnings results on Wednesday, November 8th. The technology company reported $0.07 earnings per share for the quarter, beating the consensus estimate of $0.05 by $0.02. Square had a negative return on equity of 7.98% and a negative net margin of 3.04%. The company had revenue of $257.12 million for the quarter, compared to the consensus estimate of $244.95 million. During the same period last year, the business posted $0.01 EPS. The company’s revenue was up 44.6% on a year-over-year basis. research analysts anticipate that Square will post -0.16 EPS for the current year.