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Block (SQ) Tops Q1 EPS by 13c

May 2, 2024 4:17 PM

Block (NYSE: SQ) reported Q1 EPS of $0.85, $0.13 better than the analyst estimate of $0.72. Revenue for the quarter came in at $5.96 billion versus the consensus estimate of $5.83 billion.

We are raising our full-year outlook to reflect outperformance in the first quarter and our improved expectations for the remainder of the year. For the full year, we expect gross profit of at least $8.78 billion, or 17% growth year over year. For Adjusted Operating Income, we expect at least $1.30 billion, or 15% margin for the full year. We remain focused on achieving Rule of 40 in 2026, which we calculate as gross profit growth plus Adjusted Operating Income margin. Our updated guidance for the full year equates to a Rule of 32, an increase compared to our prior guidance of at least Rule of 29 and an improvement compared to the prior year. Our outlook does not assume any additional macroeconomic deterioration, which could impact results. On a GAAP basis, we expect to recognize approximately $58 million in expenses related to amortization of intangible assets in the second quarter and $53 million in each of the third and fourth quarters, based on the intangible assets as of March 31, 2024. These amounts may be affected by fluctuations in foreign exchange rates in future periods.

For earnings history and earnings-related data on Block (SQ) click here.


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