<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="What happened” data-reactid=”11″>What happened
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Shares of digital payment and point-of-sale solutions company Square (NYSE: SQ) took a hit on Friday, falling as much as 17.2%. As of 11:50 a.m. EDT, the stock was down about 15%.” data-reactid=”12″>Shares of digital payment and point-of-sale solutions company Square (NYSE: SQ) took a hit on Friday, falling as much as 17.2%. As of 11:50 a.m. EDT, the stock was down about 15%.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The stock's pullback follows Square's second-quarter earnings release. Though its adjusted top- and bottom-line figures came in ahead of estimates for the quarter, management’s third-quarter forecasts for the two metrics were below what analysts were expecting.” data-reactid=”13″>The stock’s pullback follows Square’s second-quarter earnings release. Though its adjusted top- and bottom-line figures came in ahead of estimates for the quarter, management’s third-quarter forecasts for the two metrics were below what analysts were expecting.
Image source: Square.
<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="So what” data-reactid=”26″>So what
Square’s second-quarter adjusted revenue rose 46% year over year to $563 million, beating analysts’ average forecast for revenue of $557 million. Adjusted earnings per share was $0.21, up from $0.13 in the year-ago period. On average, analysts expected the bottom-line figure to come in at $0.17.
Helping drive the quarter was Square’s 87% year-over-year increase in subscription- and services-based revenue.
<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Now what” data-reactid=”29″>Now what
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Looking to Q3, management guided for adjusted revenue to be between $590 million and $600 million. The midpoint of this guidance range is below analysts' average forecast for revenue of $599 million. In addition, Square's outlook for non-GAAP (adjusted) earnings per share during Q3 to be between $0.18 and $0.20 is below an analyst consensus estimate for $0.22 during the period.” data-reactid=”30″>Looking to Q3, management guided for adjusted revenue to be between $590 million and $600 million. The midpoint of this guidance range is below analysts’ average forecast for revenue of $599 million. In addition, Square’s outlook for non-GAAP (adjusted) earnings per share during Q3 to be between $0.18 and $0.20 is below an analyst consensus estimate for $0.22 during the period.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content=" More From The Motley Fool ” data-reactid=”31″> More From The Motley Fool
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Daniel Sparks owns shares of Square. The Motley Fool owns shares of and recommends Square. The Motley Fool has the following options: short September 2019 $70 puts on Square. The Motley Fool has a disclosure policy.” data-reactid=”39″>Daniel Sparks owns shares of Square. The Motley Fool owns shares of and recommends Square. The Motley Fool has the following options: short September 2019 $70 puts on Square. The Motley Fool has a disclosure policy.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="This article was originally published on Fool.com” data-reactid=”40″>This article was originally published on Fool.com
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