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Square (SQ) to Report Q3 Earnings: What's in the Offing?
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Square, Inc. (SQ - Free Report) is scheduled to report third-quarter 2021 results on Nov 4.
For the third quarter, the Zacks Consensus Estimate for revenues is pegged at $4.42 billion, suggesting growth of 45.8% from the prior-year quarter’s reported figure.
Further, the Zacks Consensus Estimate for third-quarter earnings is pegged at 38 cents per share, suggesting growth of 11.8% from the year-ago reported figure.
The company surpassed the Zacks Consensus Estimate in all the trailing four quarters. It has a trailing four-quarter earnings surprise of 111.12%, on average.
The company’s comprehensive commerce ecosystem, which helps it in attracting sellers and retaining existing ones, is likely to have strengthened the seller base in the to-be-reported quarter.
Square’s robust product portfolio is expected to have driven top-line growth in the third quarter.
Integrations among the company’s product lines, which deliver enhanced user experience, are expected to have contributed to seller base growth in the to-be-reported quarter.
Square’s omnichannel offerings, which help sellers create differentiated customer experience on the back of customer insights by managing orders from the point of sale and eliminating manual aggregation of online and in-person orders, are anticipated to have added strength to the seller base.
In the quarter under review, all the above-mentioned factors are likely to have accelerated the company’s gross payment volume, which is a key growth metric for the company.
Apart from these, its expanding global footprint on the back of its Early Access Programme is expected to have contributed well. In the third quarter, Square launched the program in France in order to offer access to its integrated product portfolio to businesses, especially small and medium enterprises, in the country.
Further, the company made the program available for beta-testing in Spain in the to-be-reported quarter.
Hence, impacts of these are expected to get reflected in third-quarter revenues.
However, higher investments and increasing product development expenses are anticipated to have weighed on Square’s third-quarter profitability.
Uncertainties related to the COVID-19 pandemic are also expected to have been concerning. Foreign exchange headwinds are likely to have remained risks.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Square 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Square has an Earnings ESP of -2.42% and a Zacks Rank #3.
Stocks to Consider
Here are some stocks that you may also consider, as our model shows that these have the right combination of elements to beat on earnings this season.
HP Inc. (HPQ - Free Report) has an Earnings ESP of +1.89% and it currently sports a Zacks Rank of 1.
Applied Materials (AMAT - Free Report) has an Earnings ESP of +0.52% and a Zacks Rank of 2 at present.
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Square (SQ) to Report Q3 Earnings: What's in the Offing?
Square, Inc. (SQ - Free Report) is scheduled to report third-quarter 2021 results on Nov 4.
For the third quarter, the Zacks Consensus Estimate for revenues is pegged at $4.42 billion, suggesting growth of 45.8% from the prior-year quarter’s reported figure.
Further, the Zacks Consensus Estimate for third-quarter earnings is pegged at 38 cents per share, suggesting growth of 11.8% from the year-ago reported figure.
The company surpassed the Zacks Consensus Estimate in all the trailing four quarters. It has a trailing four-quarter earnings surprise of 111.12%, on average.
Square, Inc. Price and EPS Surprise
Square, Inc. price-eps-surprise | Square, Inc. Quote
Key Factors to Note
The company’s comprehensive commerce ecosystem, which helps it in attracting sellers and retaining existing ones, is likely to have strengthened the seller base in the to-be-reported quarter.
Square’s robust product portfolio is expected to have driven top-line growth in the third quarter.
Integrations among the company’s product lines, which deliver enhanced user experience, are expected to have contributed to seller base growth in the to-be-reported quarter.
Square’s omnichannel offerings, which help sellers create differentiated customer experience on the back of customer insights by managing orders from the point of sale and eliminating manual aggregation of online and in-person orders, are anticipated to have added strength to the seller base.
In the quarter under review, all the above-mentioned factors are likely to have accelerated the company’s gross payment volume, which is a key growth metric for the company.
Apart from these, its expanding global footprint on the back of its Early Access Programme is expected to have contributed well. In the third quarter, Square launched the program in France in order to offer access to its integrated product portfolio to businesses, especially small and medium enterprises, in the country.
Further, the company made the program available for beta-testing in Spain in the to-be-reported quarter.
Hence, impacts of these are expected to get reflected in third-quarter revenues.
However, higher investments and increasing product development expenses are anticipated to have weighed on Square’s third-quarter profitability.
Uncertainties related to the COVID-19 pandemic are also expected to have been concerning. Foreign exchange headwinds are likely to have remained risks.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Square 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Square has an Earnings ESP of -2.42% and a Zacks Rank #3.
Stocks to Consider
Here are some stocks that you may also consider, as our model shows that these have the right combination of elements to beat on earnings this season.
HP Inc. (HPQ - Free Report) has an Earnings ESP of +1.89% and it currently sports a Zacks Rank of 1.
Applied Materials (AMAT - Free Report) has an Earnings ESP of +0.52% and a Zacks Rank of 2 at present.
NetApp, Inc. (NTAP - Free Report) has an Earnings ESP of +3.70% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.