Block (XYZ) stock is down 6% after the financial technology and cryptocurrency company reported fourth-quarter 2024 financial results that missed Wall Street’s forecasts across the board.
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Block announced earnings per share (EPS) of $0.71, which was well below the $0.88 expected among analysts. Revenue in the quarter totaled $6.03 billion, which missed estimates of $6.29 billion. Sales rose 4.5% from a year earlier.
Block, formerly known as Square, faces growing competition for its point-of-sale systems used by smaller businesses from companies such as Toast (TOST) and Fiserv (FI). Block’s management team said that its gross payment volume came in at $61.95 billion during Q4 2024, beating estimates of $61.30 billion.
Growth and Expansion
In addition to its payments business, Block has expanded into cryptocurrencies and currently owns more than 8,000 Bitcoin valued at about $785 million. The company has also embarked on a growth strategy, acquiring Australian buy now, pay later (BNPL) firm Afterpay for $29 billion in 2021.
Block continues to integrate Afterpay’s services into its Cash App and Square ecosystems. The after hours decline in XYZ stock follows a 29% gain over the past 12 months. However, Block’s stock is flat (up 0.48%) over the last five years.
Is XYZ Stock a Buy?
The stock of Block has a consensus Strong Buy rating among 22 Wall Street analysts. That rating is based on 19 Buy, two Hold, and one Sell recommendations issued in the last three months. The average XYZ price target of $107.40 implies 29.34% upside from current levels. These ratings are likely to change after the latest financial results.
