Square's (SQ, $79.32) Q4 earnings exceed expectations, but Q1 guidance falls short of analysts' estimates
Square beat fourth quarter earnings estimates, but lagged behind analysts' expectations on first quarter guidance.
The merchant services aggregator & mobile payments company, co-founded by Twitter CEO Jack Dorsey, reported adjusted earnings of 14 cents per share for the fourth quarter, which exceeded analysts’ expectations of 13 cents a share (based on Refinitiv data). The earnings-per-share were also higher compared to the year-ago quarter, by 6 cents.
Adjusted revenue for the quarter surged +64% year-over-year to $464 million, compared to analysts’ estimates of $454 million (based on Refinitiv data). Sales from subscriptions and services in the quarter was $194 million, a +144% jump from a year earlier. Another major win for the company came in the form of its peer-to-peer Cash App’s monthly active customer count doubling from a year earlier to reach more than 15 million in December 2018.
However, the company’s outlook on the upcoming first quarter earnings fell short of analysts’ expectations. Square predicts earnings to range between 6 to 8 cents per share, while analysts’ expected 11 cents a share.
On the other hand, the company’s adjusted revenue guidance for the first-quarter is between $472 to $482 million – not too far off of analysts' estimates of $474 million.
Square shares dropped -3.9% Thursday morning.
XYZ in +5.91% Uptrend, growing for three consecutive days on January 29, 2025
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where XYZ advanced for three days, in of 317 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for XYZ just turned positive on January 22, 2025. Looking at past instances where XYZ's MACD turned positive, the stock continued to rise in of 49 cases over the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 61 cases where XYZ's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on February 04, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on XYZ as a result. In of 75 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
XYZ moved below its 50-day moving average on February 04, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for XYZ crossed bearishly below the 50-day moving average on January 13, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where XYZ declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
XYZ broke above its upper Bollinger Band on January 30, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for XYZ entered a downward trend on January 23, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. XYZ’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.682) is normal, around the industry mean (30.872). XYZ's P/E Ratio (4073.000) is considerably higher than the industry average of (160.113). Projected Growth (PEG Ratio) (0.918) is also within normal values, averaging (2.763). Dividend Yield (0.000) settles around the average of (0.085) among similar stocks. P/S Ratio (2.282) is also within normal values, averaging (58.109).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. XYZ’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock worse than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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a provider of credit card reader solutions for mobile devices
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