Block shares jumped 6% in extended trading on Thursday after the fintech company increased its forecast for the year.
Here is how the company did, compared to analysts’ consensus estimates from LSEG.
- Earnings per share: 62 cents adjusted vs. 69 cents expected
- Revenue: $6.05 billion vs. $6.31 billion expected
Revenue fell close to 2% from $6.16 billion a year earlier. Block said gross profit rose 14% from a year earlier to $2.54 billion, beating analysts’ estimates of $2.46 billion for the quarter. Gross payment volume at Square increased 10% to $64.25 billion, while Cash App recorded GPV of $2.37 billion.
Block raised its guidance for full-year gross profit to $10.17 billion, representing 14% growth from a year earlier. In its prior earnings report, Block said gross profit for the year would come in at $9.96 billion.
The company expects full-year adjusted operating income of $2.03 billion, or a 20% margin. For the third quarter, the company expects gross profit to grow 16% from a year ago to $2.6 billion, with an operating margin of 18%.
Net income in the quarter more than doubled to $538.5 million, or 87 cents per share, from $195.3 million, or 31 cents per share, a year earlier.
Square payment volume in the quarter grew 10% from a year earlier.
Block faces growing competition from rivals such as Toast and Fiserv‘s Clover, though its Square business still gained share during the quarter in areas such as retail and food and beverage.
Block shares were down 10% this year as of Thursday’s close, while the Nasdaq is up 10%. Last month, Block was added to the S&P 500.
Correction: A prior version of this story had an incorrect statement about revenue.
— CNBC’s Robert Hum contributed to this report.
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