{"id":32998,"date":"2024-03-01T12:20:12","date_gmt":"2024-03-01T17:20:12","guid":{"rendered":"https:\/\/usa.businessupturn.com\/?p=32998"},"modified":"2024-03-01T12:20:12","modified_gmt":"2024-03-01T17:20:12","slug":"block-shares-soar-16-following-surprise-profit-announcement","status":"publish","type":"post","link":"https:\/\/www.businessupturn.com\/usa\/block-shares-soar-16-following-surprise-profit-announcement\/32998\/","title":{"rendered":"Block Shares Soar 16% Following Surprise Profit Announcement"},"content":{"rendered":"<p>Block shares surged 16% on Friday, following the payments company\u2019s announcement of fourth-quarter earnings that surpassed analysts\u2019 estimates and demonstrated robust growth in its Square and Cash App revenue streams.<\/p>\n<p>Here\u2019s a breakdown of the company\u2019s performance compared to analysts\u2019 consensus from LSEG, formerly known as Refinitiv:<\/p>\n<ul>\n<li><strong>Earnings per Share:<\/strong> 45 cents adjusted (not directly comparable to estimates)<\/li>\n<li><strong>Revenue:<\/strong> $5.77 billion vs. $5.70 billion expected<\/li>\n<\/ul>\n<p>Block reported $2.03 billion in gross profit, marking a 22% increase from the previous year. Analysts often view gross profit as a key indicator of a company\u2019s core transactional businesses.<\/p>\n<p>The company revised its adjusted EBITDA forecast upward to at least $2.63 billion from the previous estimate of $2.40 billion.<\/p>\n<p>Formerly known as Square, Block closed out the year with 56 million monthly transacting actives for Cash App in December. The majority of these customers utilized Cash App for either peer-to-peer payments or the Cash App Card.<\/p>\n<p>Cash App\u2019s gross profit reached $1.18 billion, reflecting a 25% year-over-year growth.<\/p>\n<p>Moreover, Cash App Card boasted 23 million monthly actives in December, a 20% increase. This growth rate surpassed that of total monthly actives, highlighting the app\u2019s increasing popularity.<\/p>\n<p>Jack Dorsey, CEO of Block, emphasized the company\u2019s strategy to build the largest network with an engaged customer base using Cash App as their primary banking solution.<\/p>\n<p>Block has recently undertaken efforts to streamline operations, including layoffs in December and January. Dorsey noted that the company had now reached a workforce below the previously set cap of 12,000 employees.<\/p>\n<p>Additionally, Block recorded a $70 million charge for severance costs and a $132 million impairment on its investment in music streaming service Tidal.<\/p>\n<p>Despite a mixed record in dealmaking, Block\u2019s acquisition of Afterpay in 2021 for $29 billion has been a focal point. Dorsey highlighted plans to integrate Afterpay more closely into Cash App and leverage its buy-now, pay-later technology in 2024.<\/p>\n<p>The strong quarterly results and optimistic full-year outlook prompted Wall Street analysts to upgrade their rating of the stock. Wells Fargo upgraded Block to overweight and raised its price target to $95, while Seaport Research Partners upgraded the stock to a buy with a price target also set at $95.<\/p>\n<p>Analysts at Seaport Research Partners praised Block\u2019s organizational streamlining, focused approach within Square and Cash App, and commitment to driving profitable growth, expressing confidence in the company\u2019s future prospects.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Strong fourth-quarter earnings and growth in Square and Cash App revenue drive stock surge<\/p>\n","protected":false},"author":331,"featured_media":32735,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[4745,95],"class_list":["post-32998","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech","tag-tech","tag-usa"],"reading_time":"2 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/32998","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/users\/331"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/comments?post=32998"}],"version-history":[{"count":0,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/32998\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media\/32735"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media?parent=32998"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/categories?post=32998"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/tags?post=32998"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}