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Compared to Estimates, Block (SQ) Q3 Earnings: A Look at Key Metrics
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Block (SQ - Free Report) reported $5.62 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 24.4%. EPS of $0.55 for the same period compares to $0.42 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $5.41 billion, representing a surprise of +3.89%. The company delivered an EPS surprise of +25.00%, with the consensus EPS estimate being $0.44.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Block performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Gross Payment Volume (GPV): $60.08 billion versus $61.23 billion estimated by seven analysts on average.
Revenue- Hardware revenue: $42.34 million compared to the $44.84 million average estimate based on 10 analysts. The reported number represents a change of -2.4% year over year.
Revenue- Subscription and services-based revenue: $1.49 billion compared to the $1.46 billion average estimate based on 10 analysts. The reported number represents a change of +25.3% year over year.
Revenue- Transaction-based revenue: $1.66 billion versus the 10-analyst average estimate of $1.68 billion. The reported number represents a year-over-year change of +9.3%.
Revenue- Bitcoin revenue: $2.42 billion versus $2.18 billion estimated by 10 analysts on average. Compared to the year-ago quarter, this number represents a +37.5% change.
Revenue- Square- Total: $1.98 billion versus the six-analyst average estimate of $1.97 billion.
Revenue- Square- Hardware revenue: $42.34 million compared to the $45.94 million average estimate based on five analysts.
Revenue- Corporate and Other- Total: $50.18 million compared to the $47.50 million average estimate based on five analysts.
Revenue- Square- Subscription and services-based revenue: $402.13 million versus $387.55 million estimated by five analysts on average.
Revenue- Square- Transaction-based revenue: $1.66 billion compared to the $1.53 billion average estimate based on five analysts.
Revenue- Cash App- Bitcoin revenue: $2.42 billion versus $2.33 billion estimated by five analysts on average.
Revenue- Cash App- Transaction-based revenue: $120.78 million versus $137.74 million estimated by five analysts on average.
Shares of Block have returned -2.2% over the past month versus the Zacks S&P 500 composite's -1.1% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Compared to Estimates, Block (SQ) Q3 Earnings: A Look at Key Metrics
Block (SQ - Free Report) reported $5.62 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 24.4%. EPS of $0.55 for the same period compares to $0.42 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $5.41 billion, representing a surprise of +3.89%. The company delivered an EPS surprise of +25.00%, with the consensus EPS estimate being $0.44.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Block performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Gross Payment Volume (GPV): $60.08 billion versus $61.23 billion estimated by seven analysts on average.
- Revenue- Hardware revenue: $42.34 million compared to the $44.84 million average estimate based on 10 analysts. The reported number represents a change of -2.4% year over year.
- Revenue- Subscription and services-based revenue: $1.49 billion compared to the $1.46 billion average estimate based on 10 analysts. The reported number represents a change of +25.3% year over year.
- Revenue- Transaction-based revenue: $1.66 billion versus the 10-analyst average estimate of $1.68 billion. The reported number represents a year-over-year change of +9.3%.
- Revenue- Bitcoin revenue: $2.42 billion versus $2.18 billion estimated by 10 analysts on average. Compared to the year-ago quarter, this number represents a +37.5% change.
- Revenue- Square- Total: $1.98 billion versus the six-analyst average estimate of $1.97 billion.
- Revenue- Square- Hardware revenue: $42.34 million compared to the $45.94 million average estimate based on five analysts.
- Revenue- Corporate and Other- Total: $50.18 million compared to the $47.50 million average estimate based on five analysts.
- Revenue- Square- Subscription and services-based revenue: $402.13 million versus $387.55 million estimated by five analysts on average.
- Revenue- Square- Transaction-based revenue: $1.66 billion compared to the $1.53 billion average estimate based on five analysts.
- Revenue- Cash App- Bitcoin revenue: $2.42 billion versus $2.33 billion estimated by five analysts on average.
- Revenue- Cash App- Transaction-based revenue: $120.78 million versus $137.74 million estimated by five analysts on average.
View all Key Company Metrics for Block here>>>Shares of Block have returned -2.2% over the past month versus the Zacks S&P 500 composite's -1.1% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.