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Block (SQ) Q4 Earnings to Gain From Strength in Portfolio

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Block, Inc. SQ is slated to report fourth-quarter 2021 results on Feb 24.

The company’s robust financial services portfolio is expected to have contributed to the fourth-quarter performance.

Its friendly ecosystem, which enables sellers to combine software, hardware and payments services in order to accept payment from customers, is expected to have enabled it to maintain solid momentum across sellers.

Click here to know how the company’s overall fourth-quarter performance is likely to have been.

Block Inc. Revenue (TTM)

Block Inc. Revenue (TTM)
Block Inc. Revenue (TTM)

Block Inc. revenue-ttm | Block Inc. Quote

Portfolio Strength: Key Catalyst

Gains from Block’s portfolio strength are anticipated to get reflected in the fourth-quarter results.

Gains from its strong product lines such as Square Online Store, Invoices, Virtual Terminal and eCommerce API are expected to get reflected in fourth-quarter revenues.

The growing adoption of Cash App in the bitcoin space is likely to have been the key growth driver and accelerated the company’s bitcoin revenues in the quarter under review.

Solid uptake of Block’s hardware devices like Square Register and Square Terminal is expected to have continued driving growth in its hardware revenues in the to-be-reported quarter.

Apart from this, its partnership with TikTok, as a result of which the integrated solution Square x TikTok was introduced, is anticipated to have continued bolstering the adoption rate of Square Online Stores.

The company’s growing global footprints are expected to have been a tailwind. In the fourth quarter, Block collaborated with STATION F to provide various insights, expertise, payment solutions and developer tools to entrepreneurs in France. This is likely to have aided its performance in the quarter.

The impacts of all the above-mentioned products are likely to get reflected in the company’s fourth-quarter gross payment volume (GPV).

The Zacks Consensus Estimate for GPV for fourth-quarter 2021 is currently pegged at $46.7 billion, suggesting growth of 45.7% from the year-ago reported figure.

Zacks Rank & Stocks to Consider

Currently, Block carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Broadcom AVGO, Intuit INTU and Zscaler ZS, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Broadcom is scheduled to release first-quarter fiscal 2022 results on Mar 3. It has gained 24.9% over a year. The long-term earnings growth rate for AVGO is currently projected at 14.5%.

Intuit is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 26.9% over a year. The long-term earnings growth rate for INTU is currently projected at 15.7%.

Zscaler is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 27.2% over a year. The long-term earnings growth rate for ZS is currently projected at 37.1%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Intuit Inc. (INTU) : Free Stock Analysis Report

Broadcom Inc. (AVGO) : Free Stock Analysis Report

Block Inc. (SQ) : Free Stock Analysis Report

Zscaler, Inc. (ZS) : Free Stock Analysis Report

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