Square (SQ) To Report Q4 Earnings: What's In The Cards?
Zacks Investment Research | Feb 21, 2019 09:54PM ET
Square, Inc. (NYSE:SQ) is scheduled to report fourth-quarter 2018 results on Feb 27.
The company surpassed the Zacks Consensus Estimate in the trailing four quarters with average beat of 17.66%.
In the last reported quarter, Square delivered a positive earnings surprise of 18.18%. Adjusted earnings came in 13 cents, soaring 85.7% on a year-over-year basis and came in line on a sequential basis. The figure exceeded management’s guided range of 8-10 cents per share.
Net revenues of $882.12 million surpassed the Zacks Consensus Estimate of $860.52 million and also came ahead of the revised guided range of $840-$860 million. The figure increased 51% from the year-ago quarter and 8.2% on a sequential basis.
Positive contributions from Weebly and Zesty buyouts, accelerating bitcoin revenues and robust Gross Payment Volume (“GPV”) drove the top line in the third quarter.
For fourth-quarter 2018, management anticipates net revenues between $895 million and $905 million. Further, adjusted earnings are expected in the range of 12 to 13 cents per share.
Coming to the price performance, shares of Square have returned 66% over a year, outperforming the
Square, Inc. Quote
Upswing in GPV
GPV remains the key growth metric for Square.
Square defines larger sellers as those which make more than $125,000 of annualized GPV and midmarket sellers as those which make more than $500,000 of annualized revenues.
In the third quarter, GPV came in $22.49 billion, increasing 29.3% year over year and 5.1% on a sequential basis. Further, the figure surpassed the Zacks Consensus Estimate of $22.45 billion.
The Zacks Consensus Estimate for GPV for fourth quarter is currently projected at $22.97 billion, exhibiting impressive growth of 27.9% compared with the year-ago quarter’s figure.
We believe the company’s strengthening relationships with the sellers along with an expanding product portfolio will continue to accelerate GPV figure in the to-be-reported quarter.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has good chance of beating estimates if it also has a positive Original post
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