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Block shares surge after earnings beat and increased full-year guidance


Shares of fintech firm Block
surged as much as 19% in after-hours trading Thursday, after the company reported third-quarter earnings that beat analyst estimates on the top and bottom line and showed strong growth in both Cash App and Square revenue.

Here’s how the company did, compared to an analyst consensus from LSEG, formerly Refinitiv:

Earnings per share: 55 cents, adjusted, vs. 47 cents expected
Revenue: $5.62 billion vs. $5.44 billion expected
Block also hiked its guidance and announced a $1 billion stock buyback.

The company had previously guided to $1.5 billion in full-year adjusted EBITDA but now expects adjusted EBITDA to come in between $1.66 billion and $1.68 billion.

Block is guiding to adjusted full-year operating income of $205 million to $225 million, a sharp increase from prior guidance of $25 million. Analysts surveyed by LSEG had expected full-year revenue guidance to come in at $21.54 billion. The company didn’t provide full-year revenue guidance but did guide to $875 million in adjusted operating income for 2024.

Additionally, Block now expects 2023 gross profit ranging from $7.44 billion to $7.46 billion.

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