What Analysts Are Saying About Square After Earnings

By Chris Lange Updated Jan 13, 4:51AM EST · Published Aug 7, 10:10AM EDT

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When Square Inc. (NYSE: SQ) released its second-quarter earnings report after the markets closed on Wednesday, overall the results were impressive. The stock saw a handy gain, counteracting what has been a somewhat weak 2016. 24/7 Wall St. has included some of the key highlights from the earnings report, as well as what analysts are saying after the fact.

The company said that it had a net loss of $0.08 per share on $439 million in revenue. The consensus estimates from Thomson Reuters called for a net loss of $0.11 per share on revenue or $405.7 million. Square posted EPS of $0.20 in EPS and $310 million in revenue in the same period of the previous year.

Gross payment volume (GPV) for the second quarter was $12.5 billion, up 42% year over year. New seller growth made up the majority of the GPV increase, while positive dollar-based retention from existing sellers also had a meaningful impact. At the same time, transaction revenue as a percentage of GPV was 2.93%.

Adjusted revenue totaled $171 million, up 54% from last year, also exceeding the high end of previously issued guidance. Starbucks transaction revenue totaled $32.87 million.

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In terms of guidance for the third quarter, Square 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. Consensus estimates call for a net loss of $0.10 per share on $415 million in revenue for the quarter.

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

Canaccord Genuity has a Hold rating and raised its price target to $14 from $13.
CLSA has a Buy rating and raised the price target to $15 from $14.
Compass Point has a Buy rating and raised its price target to $14.
Craig-Hallum has a Hold rating and increased its price target to $8 from $7.50.
Deutsche Bank reiterated a Hold rating.
Evercore ISI has a Hold rating and raised its price target to $8 from $7.
S&P reiterated its Hold rating but raised its price target to $12 from $11.
SunTrust Robinson Humphrey has a Neutral rating and raised price target to $13 from $11.
Wedbush Securities has a Neutral rating and increased its price target to $10 from $8.

Shares of Square ended trading on Friday down about 1.5% at $11.15, with a consensus analyst price target of $12.92 and a 52-week trading range of $8.06 to $15.91.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.