Shares of Block (NYSE:SQ) gained over 18% in after-hours trading after the company reported earnings for its third quarter of Fiscal Year 2023. Earnings per share came in at $0.55, which beat analysts’ consensus estimate of $0.47 per share.
Sales increased by 24.3% year-over-year, with revenue hitting $5.62 billion. This beat analysts’ expectations by $190 million. For reference, analysts were expecting $5.41 billion in revenue.
The San Francisco-based company’s gross profit for its Square seller business was $899 million, up 15% year on year. Additionally, Cash App’s gross profit climbed by 27% to $984 million.
Looking forward, management now expects revenue for Q4 2023 to be in the range of $1.96 billion to $1.98 billion. Depending on the outcome, this may miss or be in line with analysts’ expectations of $1.98 billion.
Is Block Inc. a Buy or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on SQ stock based on 13 Buys and three Holds assigned in the past three months, as indicated by the graphic below. Furthermore, the average SQ price target of $76.43 per share implies 73.74% upside potential.
