Block (NYSE:XYZ) Announces Earnings Results, Beats Estimates By $0.41 EPS

Key Points

• Block reported a quarterly EPS of $0.62, exceeding analysts' expectations of $0.21 by $0.41.
• The company's revenue for the quarter was $6.05 billion, slightly below the consensus estimate of $6.32 billion, representing a 1.6% decline from the previous year.
• Despite strong earnings results, Block's stock price dropped $3.47 to $73.38 in mid-day trading following the announcement.

Block (NYSE:XYZ - Get Free Report) issued its quarterly earnings data on Thursday. The technology company reported $0.62 EPS for the quarter, topping analysts' consensus estimates of $0.21 by $0.41, Zacks reports. The company had revenue of $6.05 billion during the quarter, compared to the consensus estimate of $6.32 billion. Block had a net margin of 12.32% and a return on equity of 5.89%. The business's revenue for the quarter was down 1.6% compared to the same quarter last year.

Block Stock Performance

NYSE:XYZ traded down $3.47 during mid-day trading on Friday, reaching $73.38. 22,768,293 shares of the company's stock were exchanged, compared to its average volume of 17,619,702. Block has a one year low of $44.27 and a one year high of $99.26. The firm has a market capitalization of $45.13 billion, a PE ratio of 15.71, a price-to-earnings-growth ratio of 3.03 and a beta of 2.71. The business's fifty day simple moving average is $69.52 and its two-hundred day simple moving average is $65.52. The company has a debt-to-equity ratio of 0.24, a quick ratio of 2.27 and a current ratio of 2.27.

Insider Buying and Selling at Block

In other Block news, insider Dhananjay Prasanna sold 11,318 shares of the firm's stock in a transaction dated Tuesday, May 27th. The shares were sold at an average price of $61.41, for a total value of $695,038.38. Following the transaction, the insider directly owned 318,751 shares of the company's stock, valued at $19,574,498.91. This trade represents a 3.43% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Amrita Ahuja sold 16,358 shares of the firm's stock in a transaction that occurred on Monday, July 21st. The shares were sold at an average price of $78.60, for a total transaction of $1,285,738.80. Following the completion of the sale, the chief financial officer owned 308,397 shares in the company, valued at approximately $24,240,004.20. The trade was a 5.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 102,538 shares of company stock valued at $6,597,411 in the last quarter. Company insiders own 10.85% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on XYZ shares. JPMorgan Chase & Co. lifted their price target on shares of Block from $60.00 to $90.00 and gave the stock an "overweight" rating in a report on Monday, July 21st. Royal Bank Of Canada lifted their price target on shares of Block from $63.00 to $97.00 and gave the stock an "outperform" rating in a report on Friday. Benchmark lowered shares of Block from a "buy" rating to a "hold" rating in a report on Friday, May 2nd. Argus set a $59.00 price objective on shares of Block in a report on Monday, May 5th. Finally, Compass Point reissued a "sell" rating and set a $65.00 price objective (down from $80.00) on shares of Block in a report on Friday. Three analysts have rated the stock with a sell rating, nine have assigned a hold rating, twenty-three have issued a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $78.33.

Block Company Profile

Square, Inc provides payment and point-of-sale solutions in the United States and internationally. The company's commerce ecosystem includes point-of-sale software and hardware that enables sellers to turn mobile and computing devices into payment and point-of-sale solutions. It offers hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts EMV® chip cards and Near Field Communication payments; Chip card reader, which accepts EMV® chip cards and enables swiped transactions of magnetic stripe cards; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; and Square Register that combines its hardware, point-of-sale software, and payments technology, as well as managed payments solutions.

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