square parent roadblock (mint) reported December quarter earnings, net revenue, and total payment volume that beat analyst estimates, despite slowing growth for consumer cash app services. SQ stock jumped in extended trading amid updated guidance amid the acquisition of Afterpay.
San Francisco-based Block reported fourth-quarter earnings late Thursday. SQ stock initially declined on earnings release. But after the earnings call with Wall Street analysts, Square stock jumped 21% to close to 155 in extended trading. stock market today.
Square earnings came in at 27 cents per adjusted share, down 15% from 32 cents in the same period last year. Analysts had expected earnings of 23 cents per share.
The company said gross profit increased 47% to $1.18 billion, versus an estimate of $1.16 billion.
Square said net revenue jumped 62% to $4.42 billion, boosted by app cash transactions for cryptocurrency Bitcoin. Analysts expected revenue to reach $4.04 billion.
SQ Inventory: Total Payment Volume Meets Views
The total volume of payments from merchant customers increased by 92% to $46.3 billion, in line with estimates. However, overall payment volume growth is expected to slow in the March quarter.
Square said earnings before interest, taxes, depreciation and amortization, otherwise known as EBITDA, came in at $184 million versus estimates of $143 million.
Square on January 31 closed its acquisition of Australia-based consumer lending startup Afterpay. The deal was announced on August 1, and was originally worth $29 billion. With Block’s stock plummeting, the deal was valued at just under $15 billion at close.
Afterpay competes in the emerging “buy now, pay later” market that is encroaching on credit card networks.
Heading into Square’s earnings report, the stock has a relative strength rating of just 5 out of the top 99 possible, according to IBD stock check.
Square inventory is down 58% over the past three months.
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