Block (SQ) hikes full-year outlook as fiscal Q1 results top estimates, stock up

Block (NYSE: SQ) shares jumped more than 7% in premarket trading Friday after the company reported earnings and revenue for the fiscal Q1 that topped analyst expectations.

The financial technology provider posted earnings per share (EPS) of $0.85 for the quarter, exceeding the consensus estimates of $0.72. Revenue came in at $5.96 billion, also above the estimated $5.83 billion.

Following this robust print, Block is raising its full-year financial outlook.

The company now projects a minimum gross profit of $8.78 billion for the year, reflecting a 17% increase from the previous year. Further, the expected Adjusted Operating Income is set at a minimum of $1.30 billion, indicating a 15% margin for the full year.

In a post-earnings note, Wolfe Research analysts raised their price target on the stock from $100 to $105, reiterating an Outperform rating.

Overall, we continue to view SQ as one of the more innovative names within our coverage, with tech differentiation that we believe should support market share gains across both Square and Cash App over the longer-term," analysts led by Darrin Peller said.

"However, we recognize an element of uncertainty in the business, particularly on Square, and believe that evidence of stability/ inflection in GPV and GP growth is still needed for shares to work meaningfully over the long-run," they added.

By Vahid Karaahmetovic

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