Square (SQ) Stock Slips Despite Earnings Beat, GPV Up 31%

Square, Inc. (SQ ) just released its latest quarterly financial results, posting earnings of 6 cents and revenues of $669 million.

Currently, SQ is a Zacks Rank #2 (Buy), but that could change based on today’s results. Shares of the company have gained about 1.3% over the past month, including a 0.75% gain during regular trading hours today.

The stock is currently down around 5.5% to $45.85 per share in after-hours trading shortly after its earnings report was released.

Square:

Beat earnings estimates. The company posted earnings of 6 cents per share, just beating the Zacks Consensus Estimate of 5 cents per share. Investors should note that this consensus projection has trended downward over the duration of the quarter. Net loss for the quarter came in at $(24) million.

Beat revenue estimates. The company saw total net revenue figures of $669, surpassing our consensus estimate of $623.75 million and growing 45% year-over-year. Adjusted revenues came in at $307 million.

Gross payment volume, or GPV, was $17.8 billion for the quarter, up 31% year-over-year. The company said they continue to see strength from larger sellers, with GPV from this group up 44% and accounted for 47% of total GPV.

Looking ahead to Q2, Square expects total revenues in the range of $740 million to $760 million, with adjusted EPS between 9 and 11 cents per share.

Here’s a graph that looks at Square’s recent earnings performance:

Square, Inc. Price, Consensus and EPS Surprise

Square, Inc. Price, Consensus and EPS Surprise | Square, Inc. Quote

Square, Inc. offers financial services and marketing services. The company provides payments and point-of-sale which include hardware and software to accept payments, streamline operations and analyze business information. Its payments and POS services include In-Person Payments, Online Payments, Square Cash, Square Register, Square Analytics, Square Appointments and Square App Marketplace. The Company’s financial services include Square Capital and Square Payroll.

Check back later for our full analysis on SQ’s earnings report!

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