Block missed Wall Street estimates for third-quarter profit on Thursday amid persistent economic uncertainty and intensifying competition in the payments sector, sparking a more than 11% slide in its shares after the bell.
Consumer spending slowed in the third quarter as businesses and households curbed discretionary purchases, weighing on payment firms such as Block.
The Jack Dorsey-led company posted an adjusted net income of 54 cents per share, compared with analysts’ average estimate of 67 cents, according to data compiled by LSEG.
“The stock is down in after-hours trading, we believe, due to the bottom line miss and because it was a popular long into results,” Truist analysts said in a note.