Block Stock Jumps 17% on Guidance Raise

Block Stock Jumps 17% on Guidance Raise Feb. 23, 2024, 12:44 p.m., readers: 18

Block (NYSE:SQ) updated its full-year forecast upwards following a fourth-quarter earnings report that surpassed expectations, driven by successful monetization strategies for its Cash App payment application. This announcement led to a more than 17% increase in Block's share price intra-day today. For the year 2024, Block now anticipates an adjusted operating income of at least $1.15 billion, equating to a 13% margin, and an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of at least $2.63 billion, representing a 30% margin. In the final quarter ending December 31, Block reported an adjusted earnings per share (EPS) of $0.45 on revenue of $5.77 billion. This compares to the analyst expectations of adjusted EPS of $0.67 on revenue of $5.71 billion. The revenue beat was largely attributed to the Cash App's contribution, which reported $3.91 billion in revenue and $1.18 billion in gross profit, marking increases of 31% and 25% year-over-year, respectively.

About NYSE: SQ

B lock, Inc., together with its subsidiaries, creates tools that enables sellers to accept card payments and provides reporting and analytics, and next-day settlement. It provides hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts Europay, MasterCard, and Visa (EMV) chip cards and Near Field Communication payments; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution;

Price: 73.14
Market cap: 45.0 billion USD
Eps: 0.02
P/e ratio: 3657.00
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