Square-parent Block (SQ) on Thursday reported third-quarter earnings and revenue that topped estimates. SQ stock jumped on preliminary 2024 guidance for earnings before interest, taxes, depreciation and amortization, a key metric known as EBITDA.
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Released after the market close, Square earnings for the period ended Sept. 30 were 55 cents per share on an adjusted basis, up 31% from the year-earlier period. Analysts had projected earnings of 47 cents a share.
Also, Square said net revenue rose 24% to $5.62 billion, including Cash App transactions for digital cryptocurrency Bitcoin. SQ stock analysts had predicted revenue of $5.42 billion.
On the stock market today, SQ stock surged nearly 19% to 52.29 in extended trading. In Thursday’s regular session, Square stock rose 7.3%.
Square Stock: EBITDA Key Metric
Financial analysts also view gross profit as a key metric for SQ stock. Gross profit rose 21% to $1.9 billion, edging by estimates of $1.895 billion.
Cost-cutting boosted earnings before interest, taxes, depreciation and amortization, a key metric known as EBITDA. It jumped 46% to $477 million, handily beating estimates of $378 million.
For fiscal 2024, Square said it expects EBITDA of $2.4 billion, up about 44% from this year’s estimated $1.67 billion. Analysts had projected 2024 EBITDA of $1.94 billion.
In Q3, gross payment volume from the transactions of merchant customers rose 11% to $55.7 billion, missing estimates of $61.14 billion.
SQ stock had retreated 24% in 2023 heading into the Block earnings report. San Francisco-based Block’s earnings included consumer lending firm Afterpay.
Meanwhile, Square stock holds a weak Relative Strength Rating of 13 out of a best-possible 99, according to IBD Stock Checkup.
Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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