Square-Parent Block (SQ) Impresses Analysts with Record-Breaking First Quarter Earnings and Revenue Results

Financial analysts were impressed with Square-parent Block (SQ)’s first-quarter earnings and revenue results, which exceeded expectations and caused the company’s stock to rise. SQ reported earnings of 74 cents per share on an adjusted basis, an impressive 85% increase from the previous year. Analysts had predicted earnings of 72 cents per share. Additionally, Square’s net revenue increased by 19% to $5.96 billion, which included Cash App transactions for bitcoin. Analysts had estimated revenue to be $5.83 billion.

One of the most important metrics for SQ stock is gross profit, and in the first quarter, it rose by 22% to $2.09 billion, surpassing estimates of $2.02 billion. Cost-cutting measures also contributed to the increase in earnings before interest, taxes, depreciation, and amortization (EBITDA), which came in at $705 million, exceeding estimates of $591 million.

Gross payment volume from the transactions of merchant customers increased by only 9% to $50.5 billion in the first quarter of 2024, falling below the estimated $55.81 billion. However, for the same period, Square projected EBITDA of $680 million while analysts had forecasted EBITDA of $648 million. In the second quarter, Square forecasted a gross profit of $2.175 billion, which was aligned with estimates.

Despite declining by 8% in 2024 prior to the earning report