Yahoo Finance Block (SQ) to Release Q2 Earnings: What's in the Cards?
Block, Inc. SQ is scheduled to report second-quarter 2023 results on Aug 3.
For the second quarter, the Zacks Consensus Estimate for revenues is pegged at $5.08 billion, suggesting growth of 15.4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 35 cents per share, suggesting growth of 94.4% from the year-ago reported figure.
The company surpassed the Zacks Consensus Estimate in two of the trailing four quarters while missing the same once and matching it on another occasion, delivering an earnings surprise of 22.55% on average.
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Factors at Play
Block’s portfolio strength is anticipated to get reflected in second-quarter results.
In the quarter under review, Block’s Square launched Tap to Pay on Android for UK retailers. With a compatible Android handset and no additional expense, the new technology enables vendors to safely accept contactless payments.
The company reintroduced TIDAL RISING, which provides continuous support to a select group of rising artists through personalized marketing, education and direct funding, allowing them to develop, prosper and build their careers.
This apart, the SQ’s strengthening presence in the “buy now, pay later” (BNPL) market on the back of robust Afterpay solutions, is expected to have contributed well.
The company’s strong omni-channel offerings, which aid sellers in managing orders from POS and eliminating manual aggregation of online and in-person orders, are expected to have contributed well.
Strength in online channels, including Square Online, Invoices, Virtual Terminal and eCommerce API, is likely to have aided growth in card-not-present payment volumes. Also, Block’s growing card-present volume is expected to have been a positive.
The increasing adoption of Cash App is likely to have aided growth in Block’s gross payment volume (GPV) in the quarter under review.
The Zacks Consensus Estimate for GMV is pegged at $61.1 billion, indicating growth of 16.4% from the year-ago reported figure.
However, the impacts of increasing advertising, product development and personnel costs are anticipated to have weighed on the company’s profitability during the second quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Block this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat.
Block has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
SQ has a Zacks Rank #3.
Stocks to Consider
Here are some stocks that you may consider, as our model shows that they have the right combination of elements to beat on earnings this season.
Itron ITRI has an Earnings ESP of +7.61% and sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Itron is scheduled to release second-quarter 2023 results on Aug 3. The Zacks Consensus Estimate for ITRI’s earnings is pegged at 31 cents per share, suggesting a jump from the prior-year quarter’s reported figure of 7 cents.
CACI International CACI has an Earnings ESP of +2.36% and a Zacks Rank #2.
CACI is set to report its fourth-quarter fiscal 2023 results on Aug 9. The Zacks Consensus Estimate for CACI’s earnings is pegged at $4.85 per share, suggesting growth of 6.8% from the prior-year quarter’s reported figure.
Docebo DCBO has an Earnings ESP of +6.67% and has a Zacks Rank #3 at present.
Docebo is set to report its second-quarter fiscal 2023 results on Aug 10. The Zacks Consensus Estimate for DCBO’s earnings is pegged at 8 cents per share. The company reported a loss of 5 cents per share in the year-ago quarter.
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