Payment company Square is set to report second-quarter results after the closing bell Wednesday.
Here is what Wall Street expects:
- Revenue: $367.6 million, according to Thomson Reuters.
- EPS: 11 cents, according to Thomson Reuters.
In the previous quarter, earnings matched expectations while revenue came in ahead of estimates. But investors were focused on Square’s forward guidance. While the company gave revenue guidance well above what Wall Street was looking for, Square’s earnings guidance between 9 cents and 11 cents per share was below the average analyst estimate of 12 cents.
For the second quarter, analysts are looking for $367.6 million in revenue, which would be a 52.9 percent revenue increase from a year ago.
Shares of the fintech start-up, which is run by Twitter CEO Jack Dorsey, have surged more than 140 percent in the past year and 88 percent this year alone.
The San Francisco-based company is best known as a credit card processor but also offers payment hardware. Its peer-to-peer Cash App is growing faster than PayPal’s Venmo, according to a recent Nomura report. The company has also increased its presence in small-business lending, most recently with an eBay partnership announced in July.
Analysts at Stifel and KeyBanc both raised their price targets on Square ahead of earnings.
Stifel’s Scott Devitt raised his target to $72, about $4 above where it was trading Wednesday. He predicted “another strong quarter” driven by growth from large sellers, momentum in subscription and services revenue, and the ongoing roll-out of new products and services.
At KeyBanc, Josh Beck raised his price target to $75, predicting more growth in the peer-to-peer payment app Square Cash.
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