Banking, finance, and taxes

What to Look for in Square Earnings

courtesy of Square Inc.

Square Inc. (NYSE: SQ) is set to report its third-quarter financial results after the markets close on Tuesday. Thomson Reuters has consensus estimates that are calling for a net loss of $0.11 per share and $430.09 million in revenue. The earnings from its second quarter of 2016, totaled a net loss of $0.08 per share and $439 million in revenue.

In terms of guidance for the third quarter, Square said that it expects to have revenues in the range of $410 million to $420 million, with adjusted revenue in the range of $167 million to $171 million.

After its previous earnings report, the stock saw a handy gain, counteracting what has been a somewhat weak 2016. The mobile-payments company posted incredible results for the quarter and shareholders were quick to applaud these numbers, initially sending the stock up over 10%.

In the second quarter, Square continued to innovate, launching several new products, including Scheduled Invoices, Recurring Invoices and Card on File, which allows a seller to save a buyer’s card for future billing. The company has since made further developments in the third quarter.

As of the second quarter, 140,000 active sellers use Invoices, representing 122% growth since the second quarter of 2015. Additionally, Square has reached $2.3 billion of cumulative GPV from Invoices since the product launched in June 2014, with $542 million processed in the second quarter of 2016.

A few analysts weighed in on Square ahead of the earnings report:

  • BTIG Research reiterated a Neutral rating.
  • Credit Suisse has a Neutral rating with a $12 price target.
  • Keefe Bruyette & Woods reiterated a Market Perform rating with a $13 target.
  • Pacific Crest reiterated a Hold rating.
  • Jefferies reiterated a Buy rating with a $15 price target.
  • Stifel has a Buy rating with a $15 price target.

So far in 2016, Square has underperformed the broad markets, with the stock down about 14.6%. Over the past 52 weeks, the number is identical.

Shares of Square were trading at $11.18 on Tuesday, with a consensus analyst price target of $12.93 and a 52-week trading range of $8.06 to $15.91.

Take Charge of Your Retirement: Find the Right Financial Advisor For You in Minutes (Sponsor)

Retirement planning doesn’t have to feel overwhelming. The key is finding professional guidance—and we’ve made it easier than ever for you to connect with the right financial advisor for your unique needs.

Here’s how it works: 

1️ Answer a Few Simple Questions

Tell us a bit about your goals and preferences—it only takes a few minutes!

2️ Get Your Top Advisor Matches

This tool matches you with qualified advisors who specialize in helping people like you achieve financial success.

3️ Choose Your Best Fit

Review their profiles, schedule an introductory meeting, and select the advisor who feels right for you.

Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.